Sydvaranger to Supply Iron Ore to Tata Steel UK

6 July 2011 (Last Updated July 6th, 2011 18:30)

Northern Iron's subsidiary Sydvaranger Gruve has signed a long-term offtake agreement with Tata Steel UK to supply iron ore concentrate from its mining operations in northern Norway. Under the five-year contract, Sydvaranger will supply a minimum of 2.5Mt of iron and may extend it to ab

Northern Iron's subsidiary Sydvaranger Gruve has signed a long-term offtake agreement with Tata Steel UK to supply iron ore concentrate from its mining operations in northern Norway.

Under the five-year contract, Sydvaranger will supply a minimum of 2.5Mt of iron and may extend it to about 5.5Mt if quality is improved.

The new agreement supersedes the original contract between the two parties signed in 2008.

In exchange for the termination of the original contract, Tata Steel will receive $15m, which will be settled by means of a rebate applied to Tata shipments over the term of the new agreement.