Mount Gibson Iron has announced that it will terminate an agreement with Shougang Concord International.
The miner today stated that it has withdrawn from an agreement which would have seen it sale 80% of its life of mine production from the Extension Hill hematite mine to Shougang.
However, it declined to say why the agreement has been terminated, but did state that it is currently looking to other parties “interested in purchasing Extension Hill hematite on terms commercially acceptable to Mount Gibson.”
Despite this move, Mount Gibson’s ore sale agreement with APAC Resources is still in the works, although no revised pricing mechanism agreement has been concluded yet.
Mount Gibson can terminate this agreement as well if a consensus can not be met.
The Extension Hill project is located 260km south east of Geraldton in Western Australia, and has JORC compliant probably reserves of 12.8 million tonnes of hematite.
Mount Gibson also operates the Koolan Island project.