New York, New York-based global iron ore mining company, Iron Mining Group (IMG), announced Wednesday that its recently launched subsidiary IMG Iron Ore Trading, S.A. has entered into an iron ore purchasing agreement.
IMG Trading will purchase 180,000 metric tons of iron ore from New Mexico-based iron ore company OroGrande to be delivered in three installments of 60,000 metric tons per month beginning on or before July 31, 2011 and continuing for a three-month period.
Under the agreement, the iron ore will originate from the Iron Duke, Cinco de Mayo, Virginia and Barbara claims in OroGrande, New Mexico (OroGrande Mine).
Following the successful purchase and export of the initial 180,000 metric tons by IMG Trading, IMG plans to acquire the rights to purchase and export up to an additional 5,980,000 metric tons of iron ore from the OroGrande mine.
The iron ore IMG Trading will purchase from OroGrande will be exported to China, at an estimated CIF cost of less than $125 DMT.