Swiss-headquartered resources company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has announced that it has entered into a long-term agreement with Japanese steelmaker JFE Steel for the supply of about 300,000 mt of 65 percent Fe content iron ore pellets per year.
"We are delighted to have secured our first contract in Japan with a customer of such high caliber. We believe Ferrexpo is the first iron ore producer in the CIS to negotiate a long-term contract with a Japanese steel mill," Ferrexpo's chairman Michael Abrahams said.
Ferrexpo noted that the contract is consistent with its strategy to build relationships with first class Asian steel mills ahead of its planned Yeristovo mine expansion.
Ferrexpo sent trial cargoes to JFE in 2007 and 2009 as part of its strategy to diversify its customer base and to position itself as a credible iron ore pellet supplier to major steel mills.
JFE is a technology leader in the production of sophisticated steel products. It is the fifth largest steel producer in the world, producing 25.8 million mt of crude steel in 2009.