Shagang Offtake, page-49

One fundamental problem is that most of the rules on related party transactions are designed for M&A deals. The company secretary and the ASX Listings Compliance have probably never seen an iron ore sales contract before or thought about what drives value in one, it is a very different beast to an M&A deal and unfortunately indexation can be used as an excuse not to think too hard about the details.

Having worked in iron ore sales at one of the top 3, I can unfortunately say that very few people even in the big miners really understand how a commodity sales contract works or what terms in one drive value. It is entirely possible that Grange management don't even know if they are giving away value when they do these related party deals. The only way to truly know is to run a competitive process, and the fact the offtake always goes to the major shareholder suggests that isn't happening here.