This is 2 months old but I like the last paragraph which will...

This is 2 months old but I like the last paragraph which will really heat things up.

Admiralty closer to off-take agreement

Source: News Bites

Admiralty Resources NL advises that Shougang International is making progress in negotiating on an exclusive basis an off-take contract for their joint venture’s Caleta Port facility in Chile and other ports closer to the mine.

Cia Minera Santa Barbara intends to provide 50% of all production to Shougang and 50% to Wugung Iron and Steel Corporation (WISCO). Shougang has asked for substantial due diligence information, and this has been provided to them on a confidential basis, for their use only.

Shougang is negotiating a 10 year off-take contract for 50% of production. Minimum projected tonnage is 25Mt over 10 years when expansion works are completed, at a value of $US1.8 billion ($A1.9 billion).

The president and deputy president of Shougang and their technical and business team will visit the nine ‘retired’ mines on Admiralty’s 7,400 hectares of iron ore magnetite tenements and operation at the Santa Barbara mine, the 3,500 hectare magnetite deposit at Pampa Tolofo yet to be developed, and existing and future port locations the main one being Punta Alcalde near the town of Huasco.

Both Shougang and WISCO will have a major input into the development of the mines in terms of the product specifications being size of fines and final chemical composition.

They may also assist with development of the various infrastructure options to transport up to 10Mt of iron ore fines per annum 60km from the mine to the ports.