Fortescue Metal signs iron ore contract

Fortescue Metal signs iron ore contract

Fortescue Metals Group has announced that it signed a deal with Chinese firm Hubei Wenfeng Iron & Steel Co Ltd to supply iron ore to the Chinese producers over 20 years. Under the scope of the deal worth $1 billion, Fortescue will supply 2 million tons of iron ore to Hubei Wenfeng Iron & Steel each year. The deal, which is a binding contract, requires cash payment of $10 million. Fortescue officials stated that the binding contract provides that many of the memoranda of understanding with other steel mills be converted into binding contracts.