WISCO inks long-term iron ore supply deal with FMG

SteelOrbis Shanghai China's Hubei Province-based Wuhan Iron and Steel Corporation (WISCO) has signed a long-term agreement for iron ore supply with Australian Fortescue Metals Group Ltd. (FMG) through the intermediary of WISCO International Trade. According to the agreement, WISCO is to receive 4.4 percent of initial iron ore output from FMG Company every year - about two million metric tons of iron ore per annum. FMG Company's iron ore output currently stands at around 45 million metric tons of iron ore per annum. The agreement includes an additional sales clause which specifies that when FMG Company's annual iron ore output far exceeds 45 million metric tons, WISCO may obtain an annual five million metric tons of iron ore from FMG Company. The price of iron ore in the agreement, which will run for 10 years, will be made according to the annual international basic iron ore price.