Fenix signs binding iron ore offtake agreement with Sinosteel

Wednesday, 14 October 2020 12:24:38 (GMT+3)   |   Istanbul

Western Australia-based Fenix Resources Limited has announced that it signed a binding iron ore offtake agreement with Hong Kong-based export and import company Sinosteel International Holding Company Ltd., a wholly-owned subsidiary of Sinosteel Group Corporation Ltd., for 50 percent of production and sales from Iron Ridge.

The offtake agreement contains comprehensive terms relating to sale, shipment, delivery and pricing and the parties will now proceed to prepare and execute a formal sales agreement.

Fenix now has sales arrangements in place for 100 percent of iron ore production from Iron Ridge, after Weld Range Iron Ore PTY Limited, a wholly-owned subsidiary of Atlas Iron, took up a marketing election of 50 percent of production and sales for the project.

“We are delighted to have Sinosteel as an offtake party. Site development at Iron Ridge has already commenced. We now have our final statutory permit after receiving our works approval. We are making good progress in delivering on our previously stated timeframe of first iron ore sales in early 2021,” Rob Brierley, Fenix managing director, said.

Fenix also announced that it will purchase the existing port facilities currently owned by Sinosteel Midwest Corporation at Geraldton Port for $1 million in November this year.

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