Emerging Australian miner Brockman Resources has made a statement to correct "inaccurate market speculation arising from the uncertainty created by the Australian government's proposed Resources Super Profits Tax," confirming that both its strategic relationship with Chinese steelmaker Sinosteel's Australian subsidiary Sinosteel Australia Limited (Sinosteel) and the development of its flagship Pilbara iron ore project remains on track.
The company said, "Brockman steadfastly refutes claims made in a Dow Jones Newswire report on May 19, 2010 which suggested that, as a result of speculation over the possible introduction of the new tax, there had been a change in Brockman's strategic relationship with Sinosteel. That suggestion is completely incorrect." Brockman said that it is continuing to work productively with Sinosteel.
The company also pointed out that 68 percent of a definitive feasibility study currently being undertaken for the project is finished and it is scheduled to be wholly completed in the third quarter of 2010.
As SteelOrbis previously reported, Sinosteel signed an iron ore import contract with Brockman Resources in late April. According to the contract, Sinosteel will purchase 10 million mt of iron ore per year in the coming five years, amounting to a total value of AU$6.5 billion based on the then-current price of iron ore. Brockman said that the annual 10 million mt volume to be purchased by Sinosteel will account for 50 percent of the total iron ore output from Brockman's Marilana project in the Pilbara region of Western Australia.