Australias Centrex Metals signs iron deals with two Chinese steelmakers
ustralia’s Centrex Metals Ltd. last week signed iron ore supply deals with two Chinese steelmakers in return for equity stakes, according to a company statement.
Centrex said in a statement on the Australian Stock Exchange that it signed agreements with Baotou Iron and Steel Group Co. Ltd. and Shenyang Orient Iron and Steel Group for a total investment of around USD 7.3 mln.
In return for a USD 4.38 mln investment, Baotou Iron and Steel can purchase 1 mln tons of iron ore for five years at a purchase price set by the annual benchmark price. The contract has the option to be extended and expanded depending on supplies, according to the statement.
Shenyang Steel can purchase 1 mln tons of iron ore from Centrex each year for five years at the benchmark price after investing USD 3 mln for a 7.8% stake in the company, the statement said.
Baotou Steel is a subsidiary of Bogang Group based in Inner Mongolia and the tenth largest steel producer in China. Shengyang Steel is a private medium-sized steelmaker with operations in Liaoning and Heilongjiang provinces.
-RJ
