Mount Gibson terminates Sinogiant Steel offtake agreement

Company News

by Roma Christian

Mount Gibson Iron Limited (ASX:MGX) has announced it has formally terminated an offtake agreement with Sinogiant Steel Holdings Group Limited.

The company says the offtake agreement was entered into on 24 November 2016, and related to about one quarter of the first year’s planned production from its Iron Hill mine in Western Australia.

The iron ore product producer says termination comes following Sinogiant’s failure to comply with a fundamental term under the offtake agreement.

Mount Gibson says it has reserved the right to pursue Sinogiant for any resulting losses, and is now free to place all previously committed production to alternate customers.

Shares in Mount Gibson Iron Limited (ASX:MGX) are trading 2.94 per cent lower to 33 cents.

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