11:09 AEST June 21, 2010 ABN Newswire (C) 2004-2010 Asia Business News PL. All Rights Reserved.
Sydney, Australia (ABN Newswire) - Australian magnetite producer Grange Resources Limited
said it has secured a 25 per cent increase interim pricing for iron ore pellets.
The agreement has been reached with primary customer and cornerstone shareholder Shagang, China's largest private steel mill. The new price of US$150 per tonne of pellets, US$30 higher than the current quarter's interim price, will be effective from 1 July 2010.
Grange CEO, Russel Clark said the increased pricing arrangement recognises the rise in various spot iron ore prices over the three months. The US$150 per tonne agreed for the next quarter is regarded as a conservative estimate of the final price that will be received for the quarter, he added.
Grange also said today that Albany Port Authority has received Commonwealth approval for the port expansion project associated with Grange Resources (ASX: GRR) Southdown magnetite project. Grange is currently undertaking detailed engineering on the Southdown project near Albany in Western Australia. The company, operating the Savage River magnetite mine, produces approximately 2.3 million tonnes of premium iron ore pellets per annum.
Asia Business News Asia Bureau