Sinosteel inks supply agreement with Cape Lambert

Major Chinese metallurgical raw material trading company Sinosteel Corporation inked a supply agreement with Australian iron miner Cape Lambert Iron Ore Ltd. According to the agreement, Sinosteel will help Cape Lambert to develop its iron ore project in the Pilbara region of Western Australia. Furthermore, Sinosteel will purchase up to 100 percent of the total output from the project, which is estimated as 5 to 10 million metric tons per annum. Cape Lambert stated that the contract they signed with Sinosteel is non-binding and they are also in talks with another Chinese trading group Shandong Yuansheng International Trading Co Ltd. Sinosteel traded more than 20 million tons of iron ore last year for 18 major steel mills in China. The company is also partner to some other projects in Australia. The first shipment of its joint venture with Australian Midwest -58,300 tons of iron ore- arrived at Tianjin Port, China on March 19.