24.9°C 03:00 pm

Trading agreement creates positive outlook

Tuesday, 31st May, 2016

Carpentaria Exploration’s Quentin Hill. Carpentaria Exploration’s Quentin Hill.

Carpentaria Exploration yesterday announced another new agreement with an independent commodities trading house to purchase iron ore from its project near Broken Hill.

Gunvor Singapore has signalled its intent to buy one million tonnes of ore per annum from the Hawson Iron Ore Project, about 60km south of Broken Hill.

The new “letter of intent” is for supply to smaller Chinese steel mills and follows other recent deals with blue-chip Japanese trading house Mitsubishi Corporation and Middle Eastern DR pellet maker Bahrain Steel.

This means that half of the initial planned production from the project has been assigned to high value direct reduction markets in the Middle East and to blast furnace markets in China and the Asia-Pacific.

“This latest LOI (letter of intent) with Gunvor, another international blue-chip company, is another step in project development, product acceptance and investment attraction,” Carpentaria’s Managing Director Quentin Hill said yesterday.

“The addition of this LOI, our first focused on the Chinese market, demonstrates the clear commercial advantages that Hawsons product quality and the location close to key markets provides.

“It also demonstrates that Hawsons is ideally suited to meet international demand for high grade and DR pellet feed and pellets that is forecast to increase over time as the global steel industry shifts focus to higher productivity and cleaner, more efficient operations.”

Mr Hill said Carpentaria would continue its marketing campaign and aim for other markets in Asia and the Middle East.

“Hawsons has an increasingly positive outlook to become a long-term, low cost premium iron operation, which can deliver for Carpentaria shareholders and the Broken Hill region.”

© Copyright 2019 Barrier Daily Truth, All Rights Reserved. ABN: 38 684 603 658