Canada-based Baffinland Iron Mines Corporation (Baffinland) has announced the signing of a letter of intent for the future sale of up to 1.8 million mt of iron ore per year to Italian steelmaker Riva Fire S.p.A.
Under the terms of the letter, Riva will buy up to 800,000 mt of lump iron ore and one million mt of fine iron ore per year over a period of 15 years, once Baffinland's Mary River project, which is to focus on the European market for sales, commences operations.
"Baffinland is pleased with the strong support of Riva, and the breadth of the European steel industry," stated Gordon McCreary, Baffinland's president and chief executive officer.
Currently, the company plans to place 16 million mt of iron ore within the European market on an annual basis. The company's penetration of the market via the letter of intent is at 50 percent of Baffinland's expected sales into Europe.