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Iron Ore Offtake Agreement

In the recent past, we have seen how eager the Chinese are to participate in projects to secure their raw material supply chain. This is in line with China`s stated policy on resource security and, moreover, to transfer China`s dependence on BHP, Rio and Vale as a source of iron ore, for example. As a result, there was some competitiveness in the market to secure Dener. As part of the agreement, Glencore is ensuring the life of the project on commercial terms of approximately 4 million tonnes per year for the first 10 years, with the possibility of extending for the next 10 years for all tonnes of iron ore on Giles Lake. Macarthur Minerals announced that it has signed a binding “life-of-mine off take” agreement with Glencore International for the sale of iron ore, which will be manufactured from the Lake Giles Iron project after commercial production begins. Macarthur Minerals becomes “green iron ore company” with The Giles Lake Project in the launch of new global iron ore companies of the future were active participants in the market to get take-offs. Some are already well established in iron ore, while others have attempted to secure their entry into the market, so they have preconded to potential iron ore producers to ensure their release prior to the development of the project. “The development of the Iron Ridge facility has already begun; After obtaining our plant approval, we now have our final legal approval and we are making progress in implementing our pre-set schedule for the first iron ore sale in early 2021,” said Mr. Brierly.

In parallel with the RB Metalloyd transaction described above, the company also entered into a new agreement with the Iron Ore Company of Canada (CIO) for calendar years 2013 and 2014. The IOC, which is the largest shareholder in the Rio Tinto Group, owns and operates mineral storage and handling facilities in the Port of Sept-Elles, as well as the Quebec North Shore-Labrador Railway (QNS-L). In 2011, LIM signed a contract with QNS-L for the transport of LIM products on the QNS-L-Bahn. This agreement with Glencore would help the company complete project financing and achieve revenues of approximately $4 billion for the first 10-year period to ensure macarthur`s long-term revenue and consistent annual revenue. The funding provides significant working capital to LIM; It is expected to allow the company to increase its iron ore production in 2013 and complete its planned investment and upgrade program for the company`s silver yard processing facilities. In April 2013, LIM began its third year of direct shipment ore (EDD) production from its Schefferville mines in Western Labrador, Canada. For 2013, LIM aims to produce between 1.75 and 2 million tonnes of penance and lumps. Another important factor to take into account when taking early action on the starting agreements is what level of production can be attributed to the start-off. Without exception, for the offtake agreement to have value, there must be an obligation to take a certain quantity and a financial consequence so that this is not the case.

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