increased china contract should help fmg

The latest new from FMG, hopefully alot greener tomorrow.....

Fortescue has concluded a Variation Agreement to enhance an existing long term contract with one of China’s Top 5 steel mills. Commercial confidence
prevents Fortescue from naming the mill. This variation provides for a 3.5 million tonne increase in purchases by this mill of Fortescue iron ore over the next calendar year. Beyond 2009 the customer has committed to taking 10%
of Fortescue’s total production. During 2008, the customer has met its purchase obligations under the Fortescue contract. The contract has now been amended by the parties with the customer committing to take deliveries of up to 5.5 million tonnes per annum (‘mta’) over calendar year 2009 as Fortescue ramps up to the production rate of 55mta
during that year. The long term contract previously agreed between the parties called for the steel mill to take 4.44%, up to 2 mta of Fortescue’s first stage 45 mta
production.