December 03, 2008

FMG reconfirms first iron ore shipment to China in May

Mr Andrew Forrest CEO of Fortescue Metals Group reconfirmed at Boao Forum for Asia held in Hainan that Fortescue Metals Group would begin exporting 20 million tonnes to 30 million tons of iron ore to China this year, approximately 95% of its total output to China's Baosteel Group in May.

Mr Forrest said the ongoing iron ore benchmark price negotiation would not influence the shipments. He said that "We do not fix prices. Our task is to sell as many iron ore as possible since our customers are anxious for sufficient supply."

The data show that so far the Australian miner has inked ten-year-plus supply contracts with 35 large and medium domestic steelmakers with total export volume coming near 100 million tonnes per annum.

It is learned that FMG did not launch actual shipments in 2007, hence it did not join the benchmark price negotiation this year, but it may participate in the negotiation next year as its capacity is released.