Ann: Territory Secures Long-Term Sales Commitment, page-3

re: Ann: Territory Secures Long-Term Sales Co... From www.mineweb.com

Andrew Simpson, chairman of Australia's Territory Resources , which is awaiting the outcome of the talks to determine how much Chinese customers will pay for 2 million tonnes of ore his company has contracted to sell to three mills this year, told Reuters a drop by around 35 percent "seemed fair."

At 35 (percent), we're quite comfortable and under the circumstances that's a pretty reasonable structure. But if it goes to 55 or 60 (percent), we've got a problem," Simpson said.

China's steel industry has called for iron ore contract prices to be slashed by at least 40 percent this year.