Fortescue signs more iron ore agreements

<p>Fortescue Metals Group has confirmed that it has secured new iron ore supply agreements with Chinese steel mills as it continued to work towards its construction of rail and port facilities at Port Hedland. </p> <p>The new agreements, which Fortescue said were with three of China’s &#8220top ten steel mills&#8221, will mean selling an extra 3m tonnes of iron ore each year.</p> <p>The agreements bring the company’s total annual sales contracts to 39.5m tonnes, 6m tonnes short of its production target. </p> <p>Fortescue’s loading facilities at Port Hedland are expected to handle 45m tonnes each year, starting in 2008.</p> <p>The company hope to complete the new terminal early next year, handling ships between 50,000 and 270,000 dwt.</p> <p>Meanwhile, Mt Gibson Iron has launched a $280m takeover bid for Aztec Resources. </p> <p>If successful, the move would see Mt Gibson own one operating mine, with two mines in the development phase.</p> <p>The takeover could be the first of several possible consolidations among smaller iron ore players in Western Australia.</p> <br />