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Australian magnetite iron ore producer Grange Resources Limited has announced that it has agreed to a US$150 per dry metric ton interim price with Australian steelmaker BlueScope Steel (BlueScope) for iron ore pellets delivered from Grange's Port Latta facility in Tasmania, Australia during the quarter commencing July 1, 2010.
 
Grange is contracted to provide BlueScope with 800,000 mt per annum of blast furnace pellets until June 30, 2012. The interim price represents an increase of 107 percent on the previous annual iron ore pellet benchmark price.
 
Grange CEO, Russell Clark, said that the increased interim pricing arrangement recognizes the rise in spot iron ore prices since March 2010, adding that a new system has been discussed with Bluescope for the remainder of the contract. The company said that it has settled negotiations with its other major customer, Chinese steelmaker Shagang.
 
Grange produces approximately 2.3 million mt of iron ore pellets per annum.