Minmetals Corp and Palabora Mining sign agreement

South African mining company Palabora Mining and China Minmetals recently signed a 3-year iron ore supply agreement. According to the agreement, Minmetals' subsidiary China National Minerals (CNM) will purchase 2 million tonnes of magnetite concentrate per year from Palabora Mining. The first shipment will be made this October. The company currently sells 1.2 million tonnes of iron ore to the Chinese market, so this new deal will be a major boost to sales. The three-year contract is worth approximately 189 million US dollars.