ATLAS Iron has signed two long-term offtake agreements with Chinese steel mills for product from its Pardoo mine in Western Australia.
The innovative pricing deal will see the price of 50% of its production linked to the benchmark price of iron ore, but that can be adjusted when the benchmark price and the spot price materially diverge.
Industry officials are interested to see whether other miners include similar mechanisms in their contracts in the future.
It is a credit to the company that in one of the worst iron markets in recent times, it has managed to get steel mills committed to taking 80% of its production.
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