Australian iron ore miner IronClad Mining Limited has signed a memorandum of understanding (MOU) with Chinese steelmaker Linzhou Iron and Steel Co. for the sale of a minimum of one million mt of iron ore a year from the Wilcherry Hill Iron Ore Project in South Australia.
A press release by the company said that IronClad is fast tracking the Wilcherry Hill Iron Ore Project into production of up to two million mt a year by the final quarter of this year.
When the MOU is converted into sales contracts it will, at the minimum, account for half of the planned iron ore production in a full year by IronClad as the company proceeds with the development of the project.
The MOU will be in force from February 15, 2010 until the signing of the first sales contracts between the parties or December 31, 2010 - whichever comes first.
The parties will discuss and agree the sales contracts prices, taking account of prevailing market conditions as well as the time of shipments.