Australia based Northern Iron has signed a long term off take with Corus for supply of iron ore.

The agreement, with an initial term of 5 years from 1 July 2009, envisages sales of 6 million tonnes of concentrate representing approximately 45% of the planned base case production over the contract term. The contract provides for sales of up to an additional 2.25 million tonnes of concentrate at the mutual option of both parties.

Pricing for the concentrate is to be based on the Vale benchmark for similar products delivered into Europe on FOB basis.

Northern Iron has also entered into a MOU with a third party to sell the remainder of the planned base case production. Negotiations are continuing to convert the MOU to a formal offtake contract. It plan is to complete all offtake arrangements by the end of January

Northern Iron is an Australian company headquartered in Perth which was formed to acquire the Sydvaranger Iron Project in northern Norway. Northern Iron intends to redevelop the Sydvaranger Iron Project to commence production of magnetite iron concentrate for supply into the European market. The base product planned to be produced is expected to grade between 2.5% and 3% SiO2, with low levels of deleterious elements (P, Ti, V, Al2O3, S, As, Hg).