WESTERN Australian iron play Ferrowest has again pushed back the announcement of its first offtake and investment agreements.
The company had expected to execute the agreements over its Yalgoo pig iron project in WA’s Mid West by early December, however, today it said the parties involved had requested an extension.
Ferrowest managing director Brett Manning said the agreements with two unnamed overseas companies were finalised and waiting to be executed.
“I’m not expecting it to be too long but I don’t have a date,” he said.
The company has been in discussions with a range of parties since 2007 about securing offtake from Yalgoo in exchange for investment in the project.
Despite falling demand and lower prices for merchant pig iron, Manning said the company remained confident the agreements would go ahead.
He said he was not aware of any reasons for the delay in execution.
Pig iron is used in electric arc furnaces with a customer base including buyers in Japan, Korea and Malaysia.
Manning said recent closures to pig iron plants in Brazil had lowered supplies.
Ferrowest is targeting a 2011 production debut at Yalgoo.
Shares in Ferrowest were unchanged at 7c.
LCG Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
