MMX Signs Preliminary Agreement with Minerinvest
OREANDA-NEWS. August 17, 2011. MMX, Eike Batista’s EBX Group mining company, disclosed on July 13 the signing of a preliminary nonbinding agreement with Minerinvest Mineracao, setting the ground-rules for the negotiation of contracts to handle 5 million tons of iron ore at the
Port Services
MMX will handle up to 5 million tons of iron ore from Minerinvest annually for ten years, as from the beginning of operations of the
With the signing of the contract, the holders of PortX variable compensation bonds based on royalties (Bovespa: MMXM11) will be entitled to receipt of payment of royalties of USD 5 per tonover whichever is greater: volume handled or volume of take-or-pay.
Supplying of iron ore
Minerinvest will sell up to 5 million tons of iron ore per year to MMX at a price of USD 64 per dry ton with 63.5% ferrous content, which will be delivered at an MRS railway terminal. The purchase price of the ore will be readjusted in line with the change in the price of the product in the international market. The basis will be the price in the second quarter of 2011 and the floor established for the agreement isUSD 30 per ton. The contract, valid for 10 years as from the start-up of operations of the
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