Fortescue Metals signs its third iron ore deal with China
Australian metal company Fortescue Metals has recently signed its third iron ore contract with China. The deal has been signed with Ping Xiang Iron and Steel Co in Jiangxi Province. The deal, covering supply of 2 million tons of iron ore each year over 22 years, requires prepayment of $20 million. With this deal, prepayments to be made to the company for Fortescue's Pilbara project by the Chinese companies amount to A$66 million ($48.5 million). Fortescue officials stated that the agreements with the Chinese companies show the confidence in their Pilbara project. Pingsteel, which was established in 1954, produces 4 million tons of iron and steel products per annum. As previously reported by SteelOrbis, the other two Chinese companies with which Fortescue signed iron ore contracts were Jiangsu Fengli Group Ltd and Hebei Wenfeng Iron and Steel Co Ltd.