Australia-based iron ore miner Mount Gibson Iron Limited (Mount Gibson) has announced that it has entered into a life-of-mine agreement for the sale of iron ore from its Extension Hill hematite project in Western Australia to Glencore International (Glencore), a leading multinational mining and commodities trading company.
Under the agreement, Glencore will purchase 48 percent of Extension Hill's iron ore, equivalent to approximately 1.44 million mt at a production rate of 3 million mt per year. Pricing under the agreement will refer to a market-based clearing mechanism using Platts price indices.