Canada-based mineral exploration and development company Strategic Resources Inc. has announced that it has inked agreements with Singapore-based Javelin Global Commodities (SG) PTE Ltd, a subsidiary of UK-based commodity trading company Javelin Global Commodities, for the supply of direct reduction (DR) grade iron ore concentrate and for the sale of DR grade pellets from its project in Québec. The agreements are backed by a $150 million working capital that will be provided by Javelin.
Under the given agreements, Javelin will supply about 4 million mt of DR iron ore concentrate to Strategic Resources. In return, it will also sell up to 4 million mt of DR grade pellets per year that will be produced at the Canadian company’s planned iron ore pelletizer project at Port Saguenay in Québec. As a result, Strategic Resources will be able to start the construction of its pelletizer project with a capacity of 4 million mt per year in 2025 and will eventually implement the first phase.
The company also stated that it is in talks with global partners such as Metso and Tenova for the second phase of the project. Following the implementation of the second phase, it will be able to produce direct reduced iron or hot briquetted iron, supporting the global transition to electric arc furnaces.