Ready to roll, but … BC Iron has finally sealed its first iron ore offtake agreement. Now, all it needs is a railway.
The metals trader Tennant Metals has agreed to take 25 per cent of the Pilbara hopeful's production for at least five years.
BC could produce at an initial 1.5 million tonne-a-year rate at its Nullagine project from late this year if Fortescue Metals agrees to haul its ore. But so far, despite Fortescue's public stance in favour of open access to Pilbara railways, it has yet to sign a deal.
It is understood BHP Billiton provided BC with a haulage term sheet, but the need to dump the ore somewhere at Port Hedland that would not use BHP's car dumper and port facilities means that is not a viable option.
Fortescue has let Atlas Iron use its port facilities but so far has not agreed to let BC and Brockman Resources on its railway to develop their nearby projects.
BRM Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
