WA iron ore miner Gindalbie Metals has secured one of Australia’s biggest export deals with China.
Gindalbie Metals has signed a $60 billion sales contract with its Chinese joint venture partner, Ansteel.
Under the agreement, Gindalbie will sell all of its magnetite iron ore from its Karara project for 30 years.
The company began construction of the mine last year and is expected to begin production in the second half of 2011.
Gindalbie’s chief executive Garrett Dixon says the project would have stalled without the deal.
“Without an offtake arrangement and a guarantee of payments in the future for your iron ore, you really can’t develop a project,” he said.
“It’s a major step for us and underpins all the other things we’ve been doing. It’s taken a while to get here but it just shows the importance of the agreement.”
Mr Dixon says it is a great outcome for both parties.
“We have a really good relationship, so locking this away means Ansteel actually has a long-term source of premium iron ore for the life of the project,” he said.
Mr Dixon says Gindalbie is close to finalising an offtake deal for its haematite iron ore deposits.