Mining company Grange Resources Ltd
(ASX:GRR) has agreed to a US$150 per dry metric tonne interim price with BlueScope Steel for iron ore pellets delivered from Grange’s Port Latta facility.
This interim price represents an increase of 107% on the previous annual iron ore pellet benchmark price.
Grange is contracted to provide BlueScope with 800,000 tonnes per annum of blast furnace pellets until 30 June 2012.
CEO Russell Clark says the increased interim pricing recognises the rise is spot iron prices since March 2010.
Mr Clark says discussions are continuing between the companies to negotiate a new pricing mechanism for the remaining two years of the current contract.
While the new pricing is being finalised, Mr Clark says the agreement on an interim price guarantees enhanced revenue in the short term.
Grange Resources reported a profit of $86 million for the year ending 30 June 2009.
