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|Brockman Secures First Off-Take Commitment From China|
|= In respect of Marillana Iron Ore Project, Pilbara, Western Australia =|
Australian Brockman Resources Limited announced April 20 that it has taken another key step towards becoming a leading Australian mid-tier iron ore producer after signing a landmark Memorandum of Understanding (MOU) with China's largest iron ore importer, Sinosteel Australia Pty Ltd ("Sinosteel"), for the purchase of up to 50% of future production from its flagship Marillana Iron Ore Project ("Marillana Project") in the Pilbara region of Western Australia.|
Under the MOU - non-binding -, Sinosteel will purchase a maximum of 10Mtpa of production over an initial 5-year off-take period. Significantly, the MOU also contemplates the parties discussing wider strategic investment options by Sinosteel in the Marillana Project.
Sinosteel Corporation is one of China's largest State-owned enterprises and its Australian subsidiary, Sinosteel Australia Pty Ltd, has played a key role in the Pilbara iron ore industry since entering the Channar Mining Joint Venture with Rio Tinto in 1987. Sinosteel was China's leading importer of iron ore in 2009, importing over 40 Mt for Chinese steel-making markets.
The MOU represents the first agreement signed by Brockman in respect of off-take from the Marillana Project and provides a strong foundation for completion of the Definitive Feasibility Study ("DFS") and project development, according to Brockman. The DFS is currently more than 60% complete and is scheduled to be completed during the third quarter 2010.
The signing of the MOU confirms the technical acceptance of Marillana Project ore, following the recent release of key metallurgical test work results confirming that the Marillana detrital ore can be upgraded to a final product grade of between 60.5% and 61.5% Fe. The final product specification is comparable with direct shipping hematite ore being mined from other significant Pilbara iron ore projects.
|last modified : Tue 27 Apr, 2010 [09:59]|