Amex Resources has executed two offtake memorandum of understandings for its Mba Delta Ironsand Project, set to be Fiji’s first iron ore mine, following the recent successful completion of a Bankable Feasibility Study.

The first agreement, with one of China’s major steel mills, is for two-thirds of the project’s initial annual production of 750,000 tonnes of ironsand concentrate. The second agreement is for an additional 120,000 tonnes annually.

Amex is in advanced negotiations with other steel mills and further MoUs are anticipated to be completed shortly.

Pricing negotiations have been based on the formula derived in the BFS, linked to the 62% iron CIOPI China domestic spot price, with appropriate discounts and credits for variation in iron and vanadium content.

The Mba Delta Project has generated strong interest from major titano-magnetite users and traditional blast furnace operators.

Iron makers consider the Mba Delta concentrate attractive due to low sulphur and phosphorous, extractable vanadium with recovery rates of over 90%, and its high vanadium/titanium ratio.

The project is located on the Fijian island of Viti Levu and covers an area of more than 28 square kilometres at the mouth of the Mba River.

Amex plans to produce and export an initial 750,000 tonnes of magnetite concentrate annually from its Mba Delta Project.

The company was recently granted a Special Mining Lease over the project in Fiji, taking a major step towards bringing the island nation’s first iron ore mine into production.

The lease has been granted for a 21 year term over the 220 million tonne at 10.9% iron Indicated Resource. With the mining lease granted Amex is focusing on the detailed engineering, procurement and construction phase of the project.

Source - Proactive Investors

(www.steelguru.com)