IMX Resources Limited announced that it has signed a further variation to the Phase 1 life of mine sales contract it previously signed with Jilin Tonghua Iron & Steel Group (Mining) Co Ltd (Tonghua Mining). Under the terms of the variation the definition of benchmark pricing has been revised to reflect the current index based pricing mechanism used for long term iron ore sales contracts.

Mr Duncan McBain MD of IMX Resources said that “This latest variation to the sales contract updates the sales contract to reflect the current index based iron ore pricing mechanisms as a result of the demise of the traditional iron ore benchmark pricing.”

Under the original sales contract there was provision to move to an alternate pricing mechanism in the event that the traditional annual iron ore benchmark pricing ceased to exist. With the demise of the benchmark system, Termite Resources NL, IMX’s 100% owned operating subsidiary for Cairn Hill, and Tonghua Mining have agreed to change the pricing mechanism to reflect the current custom and practice for the pricing of iron ore.

The new pricing mechanism is index based and adjusted for freight to provide a FOB equivalent price. Termite Resources will continue to receive payment for both the contained iron and copper.