Roy Hill has signed two memoranda of understanding with Chinese companies during the China International Import Expo (CIIE) in Shanghai.
The miner last week shook hands with China’s importer and exporter of steel products, Angang Group International Trade Corp.
This follows on from the first agreement in 2016, shortly after Roy Hill’s first shipment of ore in December 2015.
Fitzgerald said, “Since the signing of our first memorandum of understanding in 2016, relations between our organisations have continued to flourish, and today we again meet to acknowledge, formalise and extend our mutually beneficial commercial arrangements.”
The chief executive credited its success to Roy Hill’s majority owner Gina Rinehart, who celebrated the inaugural shipment of Hope Downs iron ore to Dalian – a port city on the Liadong Peninsula – with Angang in 2008.
“It is upon this relationship, forged between Roy Hill’s chairman Mrs Gina Rinehart and Angang in 2008, on which Roy Hill has been able to extend this relationship,” Fitzgerald said.
Roy Hill also signed a memorandum of understanding with Xiamen ITG Group Corp, a supply chain management conglomerate which provides iron ore, coal as well as price, volume and logistic optimisation advice to steel mills across China.
Commenting on ITG’s shareholding in one of the leading steel mills in South East China, Sansteel Group, Roy Hill chief executive Barry Fitzgerald said, “Sansteel is one of the pioneer mills in China to use Roy Hill’s iron ore, and it is pleasing to sign another memorandum of understanding today with ITG, reinforcing Sansteel’s support for our high quality product.
“ITG and Sansteel’s deep experience and expertise in using Roy Hill’s iron ore has been established on the back of mutual respect and trust – and the signing of this memorandum of understanding seeks to extend this relationship even further into the future.”
The collaboration will not only see the expanded use of Roy Hill iron ore at Sansteel’s steel mill, but also its iron ore being promoted to other steel mills in China.
Fortescue last week also signed eight agreements with Chinese steel mills at the CIIE, of which China is its primary market.