AAP reported that Mount Gibson Iron terminated an agreement with a Chinese steel manufacturer for the sale of 80% of life of mine production from the Extension Hill mine.

Mount Gibson didn't say why it terminated the agreement with Shougang Concord International Enterprises Company Ltd.

Mount Gibson said its ore sale agreement with APAC Resources Ltd remained on foot, although the two sides had not reached an agreement regarding a revised pricing mechanism.

The iron ore miner said it retained an ability to terminate this sale agreement.

Mount Gibson said discussions commenced in January 2011 with a number of other parties interested in purchasing Extension Hill iron ore on terms commercially acceptable to Mount Gibson and the miner was confident of concluding replacement agreements in the coming months.

(Sourced from AAP)