Fe Limited (ASX:FEL)’s offtake partner Glencore has booked the bulk carrier MV Bison to perform the maiden voyage of lump material from the JWD Iron Ore Project in Western Australia.
The cargo has been sold to a leading South East Asian mill, which results in a slightly lower freight cost relative to delivery to China.
FEL has hedged the cargo on the basis of an October quotation period (pricing month) at a floor price of USD 160/dmt basis 62% Fe.
The haulage ramp up to complete the cargo build at port is on track, with a significant increase in daily volumes achieved over the last ten days and additional resources mobilising to the project this week.
MV Bison is set to arrive at Geraldton Port between 24 to 28 September.
“Strong pricing”
FEL Executive Chairman Tony Sage said: “It’s pleasing to see the trucks ramping up and comforting to know we have locked in strong pricing for this cargo and our next two shipments.
“We look forward to loading commencing later this month.”