Quebec, Canada-based Labrador Iron Mines Holdings Limited (LIM) has announced that they have inked an agreement with Iron Ore Company of Canada (IOC) for the sale and shipping of all of LIM's iron ore production in 2011.
Under the confidential sales contract with IOC, the iron ore will be delivered to Asian markets and resold by IOC's marketing organization on the spot market. The sale price for iron ore sold to IOC will be based on the actual realized prices to Chinese customers, less an allocation for handling, loading, shipping and sales costs.
IOC is Canada's largest iron ore producer from its mines located in Western Labrador and is a leading global supplier of iron ore pellets and concentrates. IOC's major shareholder and operator is the Australian miner Rio Tinto.