November 22, 2007 - 4:26PM AdvertisementAdvertisement
Fortescue Metals Group Ltd has signed an agreement with Chinese steel mill Hangzhou Iron and Steel Group for the supply of iron ore from its emerging project in Western Australia.
In a statement on Hangzhou Iron's website, the Chinese steel mill said it had signed a 10-year agreement on November 16 with Fortescue for the supply of iron ore.
The annual supply was not disclosed.
Hangzhou Iron chairman Tong Yunfang, Fortescue executive director Andrew Forrest and West Australian premier Alan Carpenter attended the signing ceremony.
Fortescue has in place similar agreements with China's largest and third largest steel mill's - Baosteel and Tangshan Iron and Steel Group.
Fortescue executive director Graeme Rowley was unavailable for comment.
The iron ore hopeful is developing its project in the Pilbara region, 260 kilometres south-east of Port Hedland, and expects to ship first ore by mid-May 2008.
The company has set an initial production target of 55 million tonnes per annum, before progressively ramping up to a potential 200 million tonnes annually.
Fortescue has been reluctant to set a date for the 200 million tonne per annum target, but Hangzhou Iron said in its statement the milestone may be reached in 2014.
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