Mount Gibson scraps another iron ore off-take agreement

iron ore

Iron ore miner Mount Gibson has terminated an off-take agreement with China’s Sinogiant Steel Holdings Group.

The arrangement between the two companies applied to around one quarter of Mount Gibson’s planned output in the first year of production from the Iron Hill mine in Western Australia.

According to Mount Gibson, the termination follows Sinogiant’s failure to comply with a fundamental term under the off-take agreement.

The company can now place all production previously committed to Sinogiant with alternative customers.

Mount Gibson chief executive officer Jim Beyer commented: “Mount Gibson continues to sell Iron Hill material into the market and expects to place all production from Iron Hill with customers as it becomes available.”

The company also terminated an off-take agreement with Xinyu Iron and Steel Group last month for the same reason.

Mount Gibson launched development of the Iron Hill project in the first quarter of 2017 after securing final approvals for the iron ore operation.

Iron Hill is about 3km south of the company’s now depleted Extension Hill open pit mine.

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