SteelOrbis Shanghai
Wuhan Iron & Steel Corporation (WISCO) has inked an agreement with Australia-based iron ore producer Admiralty Resources (ADY) for the supply of a total of over 26 million mt of iron ore.
ADY announced the signing of its new 10-year iron ore supply agreement with WISCO on October 12. According to the agreement, ADY will supply 750,000 mt of iron ore to WISCO in 2008, to be followed by 1.3 million mt in both 2009 and 2010. ADY will subsequently supply three million mt annually for the period from 2011 to 2018 inclusive, depending on the completion of the capesize port at Punta Alcalde, Chile.
ADY plans to mine two million mt of iron ore in 2008 at its Santa Barbara mine located in Chile, and aims to increase this figure to 3.6 million mt for both 2009 and 2010.
The iron ore agreement between WISCO and Admirality Resources is to guarantee that Admirality Resources will supply a certain quantity of iron ore to WISCO annually and the iron ore price is not involved in this supply contract. The price should be decided upon the result of the international iron ore price talk.