Ann: Territory Secures Long-Term Sales Commitment, page-4

re: Ann: Territory Secures Long-Term Sales Co... Deal is with the same Chinese customers.

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Territory Resources to supply 2m t/y iron ore to China mills
Australian junior iron ore miner Territory Resources has inked agreements with three Chinese steel mills to supply them with a total of 2m tonnes of iron ore annually for three years.

Territory will supply them with lump and fine ore from its Frances Creek operations 190km south of Darwin in Australia’s Northern Territory for the next three years, it said yesterday.



Pricing will be benchmarked each year against major annual long-term contracts for Western Australian iron ore. The agreements are conditional upon the parties agreeing to the annual prices determined, whereby the companies will then enter into binding yearly sales contracts. The three-year contracts will start once the long-term prices are set, a company spokesman tells Steel Business Briefing.

The three mills are already Territory customers and shipments have been ongoing since 2007, the official says. He declined to name the companies. Territory will continue to sell to these customers at spot iron ore prices until the final contracts are completed. The company markets and sells its ore to China via Noble Group.

Territory remains on track to complete the ramp-up of production at Frances Creek to an annualised rate of 2m t/y during 2009, the company adds.