Australian mining company Northern Iron has announced the signing of a five-year offtake agreement with Europe's second largest steelmaker Corus UK Ltd (Corus), a subsidiary of India's Tata Steel, in relation to its Sydvaranger Iron Project in northern Norway.
Under the terms of the agreement, Northern Iron is to sell to Corus six million mt of concentrate with a mutual option to sell an additional 2.25 million mt of concentrate over the five-year contract period.
Pricing for the concentrate will be based on Brazilian iron ore company Vale's benchmark for similar products delivered to Europe on a free on board (FOB) basis.
Northern Iron was formed to acquire the Sydvaranger Iron Project in northern Norway, in order to supply quality magnetite iron concentrate to the European and Middle East markets.