Atlas Iron Ltd. has signed three new off-take contracts for 2.2 million metric tons (mt) of iron ore a year. The three contracts, which have durations of one to three years, were signed with two Chinese steel mills and a major international trading house.
Atlas also reported it has recently shipped its first cargo outside of China via a spot sale to a major Asian steel mill with a view to growing the relationship with the purchaser. Pricing for these recent term contracts are based on the benchmark 62% Fe index, adjusted for iron content and discounted for impurities in line with normal market practice.
Atlas Managing Director Ken Brinsden said the new contracts and Asia-wide interest reflected strong demand for Atlas’ product and the company’s growing reputation as a reliable producer. Atlas advises that negotiations are ongoing with a number of its existing customers about increasing sales tonnages under further term contracts. Atlas also continues to have discussions around new term contracts with a variety of other parties both inside and outside of China.