Australian mining and exploration company Grange Resources Limited (Grange) has announced that it has secured a 25 percent increase in interim pricing for iron ore pellets with its primary customer and cornerstone shareholder Shagang, China's largest private steel mill.
The new price of US$150/mt for pellets, US$30 higher than the current quarter's interim price, will be effective from July 1, 2010.
Grange's CEO Russell Clark said that the increased interim pricing arrangement recognizes the rise in various spot iron ore prices over the past three months. "The $150/mt agreed for the next quarter is regarded as a conservative estimate of the final price that will be received for the quarter," he added.
In addition, the company has also announced that Albany Port Authority has received Commonwealth approval for the port expansion project associated with Grange's Southdown magnetite project. Grange is currently undertaking detailed engineering on the Southdown magnetite project near Albany in Western Australia. Grange operates the Savage River magnetite mine, which produces 2.3 million mt per annum of premium iron ore pellets.