Norway-focused iron ore miner Northern Iron said Tuesday concentrate produced at Sydvaranger was being trialed at further sinter plants in Europe, after inaugural cargoes were bought by ArcelorMital and ThyssenKrupp in 2013.
Northern Iron also said it was looking to make spot-based sales into China and has plans to expand production later this decade and make more high Fe concentrate available for new customers.
It has granted shareholder OMH Ltd's OMS unit exclusive marketing rights in Asia, excluding the Middle East and Commonwealth of Independent States, the Australian Securities Exchange-listed company said in an annual report.
Persian Gulf-based DRI pellet producer and steelmaker Bahrain Steel resumed purchase of concentrate in the second half of last year, taking 120,000 dry mt.
Keystone offtaker Tata Steel may take more from Northern Iron under a five-year contract expiring March 2016 and for a minimum 5.2 million mt, primarily for use at the Ijmuiden Pellet Plant. Pricing is based on a current quarter basis since the fourth quarter of 2011.
"There also exists the potential for Tata to take up to 7.7 million mt over the five-year period if product quality improves further," it said.
"The pricing mechanism is in line with Vale's mechanism for iron ore fines (which is the prevailing market mechanism in the Atlantic basin) and the FOB price reflects the proximity of Sydvaranger to Tata Steel in Europe and the quality in terms of silica content," it said.
Northern Iron produced 1.992 million dry mt of concentrate in 2013, marginally higher than in 2012, as volumes recovered strongly in the second half. The concentrate product averaged at 68.5% Fe, with 4.5% silica and 0.3% alumina, based on a company report.
Shipments last year dropped to 1.917 million dmt, from 1.928 million dmt in 2012. Europe took 1.797 million mt last year. Pricing averaged $103/dmt FOB Kirkenes.
