PERTH (miningweekly.com) – Junior Iron Road has inked nonbinding memoranda of understanding (MoUs) with Chinese steel companies to support offtake agreements for its Central Eyre iron project, in South Australia.
Under the MoUs, the steel companies would conduct technical evaluations of the iron concentrates at the project to verify the commercial and technical merits of the product as a precursor to entering discussions towards a letter of intent for the long-term supply of concentrate.
Iron Road MD Andrew Stocks said the agreements were a major milestone for the company as it progressed towards the development of the Central Eyre project.
“Our high-quality product from Central Eyre offers significant advantages for steel mills intent on running the most efficient and environmentally compliant operations, hence the strong interest we have received from a number of parties.
“The MoUs are aimed at establishing a detailed understanding of the commercial and technical benefits the Central Eyre product will deliver for steel mills, prior to entering into letters of intent for the long-term supply of iron-ore product from the project.”
The project is expected to produce 24-million tonnes a year over a 25-year mine life.