Australia-based iron ore miner Mount Gibson Iron Limited (Mount Gibson) has announced that it has formally terminated an offtake agreement entered into with Chinese steelmaker Sinogiant Steel Holdings Group Limited (Sinogiant) on November 24, 2016, relating to approximately one quarter of the first year’s planned iron ore production from its Iron Hill mine in Western Australia. The termination follows Sinogiant’s failure to comply with a fundamental term under the offtake agreement.
Mount Gibson stated that, consistent with its rights, it is now free to place all production previously committed to Sinogiant under this agreement with alternative customers.
Mount Gibson’s chief executive officer Jim Beyer stated that the company continues to sell Iron Hill material into the market and expects to place all production from Iron Hill with customers as it becomes available.