AusRAIL, Market Sectors

Fortescue lauds 10-year off-take deal with Baosteel

<p>Fortescue Metals Group’s push to cement itself as a long-term, iron-ore exporting giant has gained significant ground, with the company yesterday (Monday, March 26) revealing a 200m tonnes off-take deal with China’s largest steel firm, Shanghai Baosteel.</p> <p>The deal is a strengthening and deepening of the relationship between the two companies, which aim to create a joint venture in three months’ time, with Baosteel funding further exploration in the Pilbara.</p> <p>The companies have also agreed to explore an area near the Fortescue railway route between the Cloud Break mine and Port Hedland.</p> <p>&#8220Fortescue believes Baosteel’s signing of the above documents marks a significant turning point in the development of the Pilbara on a long-term infrastructure driven and community basis,&#8221 the company said of the 10-year, 20m tonnes a year deal.</p> <p>&#8220It underpins Fortescue’s previously announced objective to grow its Pilbara Iron Ore and Infrastructure project with a target of 110m tonnes."</p> <br />