Major Chinese metallurgical raw material
trading company Sinosteel Corporation inked a supply agreement with Australian iron miner Cape Lambert
Iron Ore Ltd.
According to the agreement, Sinosteel will help Cape Lambert to develop its
iron ore project in the Pilbara region of Western
Australia. Furthermore, Sinosteel will purchase up to 100 percent of the total output from the project, which is estimated as 5 to 10 million metric tons per annum.
Cape Lambert stated that the contract they signed with Sinosteel is non-binding and they are also in talks with another Chinese
trading group Shandong Yuansheng International
Trading Co Ltd.
Sinosteel traded more than 20 million tons of
iron ore last year for 18 major steel mills in
China. The company is also partner to some other projects in
Australia. The first shipment of its joint venture with Australian Midwest -58,300 tons of
iron ore- arrived at Tianjin Port,
China on March 19.