re: Ann: Iron Valley Project - Construction C... Butchy - this...

re: Ann: Iron Valley Project - Construction C... Butchy - this is the announcement from Minres last year. Note the 'minimum annual ore tonnage purchase' statement but no definite tonnage figure.

Gary

28 February 2013
ASX Announcement

MRL agrees mine gate purchase agreement
for Iron Valley iron ore

Mineral Resources (MRL; ASX:MIN) announces today that it has signed a mine gate purchase
agreement for iron ore from Iron Ore Holdings Ltd’s (IOH; ASX:IOH) Iron Valley tenement, located
in the Pilbara region of Western Australia.

? MRL has agreed to develop the mine on IOH’s behalf for operations to commence within 6
months of final mining approvals being granted;
? IOH is responsible for securing approval for the mining proposal and other statutory items
and MRL having responsibility for operating approvals;
? Commencement of the construction phase is expected to be early in Q3 2013;
? MRL will utilise its core mining, processing and logistics competencies to develop and
operate the mine and will buy minimum annual volumes of iron ore product from IOH at the
mine gate;
? MIN will target a production ramp-up over a three to four year period, depending on
economic conditions and the availability of infrastructure and supply chain resources;
? MIN will transport the ore by road to Port Hedland and ship product from port facilities in
the Port Hedland region while also investigating the potential of lower cost mine to port
transport solutions;
? Mine gate payment prices and the minimum tonnage purchase obligations are both structured
in a manner that provides appropriate protection to the parties against the risk of adverse
operational and economic conditions whilst ensuring the parties also share in the upside from
fluctuations in iron ore price