Fortescue and Baosteel ink long term agreement

Australian iron miner Fortescue has announced the inking of a long term agreement with Baosteel Trading Co Ltd - trading subsidiary of the Chinese Baosteel Group - for the export of up to 20 million mt per annum of iron ore. According to the offtake agreement which will be in effect for ten years, Baosteel will import up to five million mt of iron ore in the first phase - equal to 11.1 percent of Fortescue's initial production of 45 million mt. This quantity will be increased gradually as Fortescue increases its production capacity. In line with the agreement, Baosteel will make a joint investment with Fortescue to increase the iron ore production capacity of the company.