IMX Resources additional Cairn Hill Ore supply agreements with new Chinese customer

IMX Resources (ASX: IXR) has received a major boost from the company's new Chinese customer signed earlier in the month, with the unknown Chinese entity executing an option for a third shipment of Cairn Hill magnetite – copper ore.

The 70,000 tonne shipment is expected to load at Port Adelaide at the end of July 2011, and would be the third to the buyer which is IMX's second major Chinese customer.

Importantly for IMX - the company has an option for a fourth shipment of the same size with a September 2011 loading date.

Duncan McBain, managing director, said that the relationship with the new customer had been three years in the making and it is now maturing.

"The third and potential fourth shipments have been made under the same terms and conditions as the first two shipments and discussions are progressing on the details of a long term contract with this customer.

"Further discussions are continuing with other potential customers.”

IMX has now completed the ramp up to full production of Cairn Hill Phase 1 with the delivery of the final rail wagons from Gemco, providing economies of scale to reduce cost structures in accordance with the company's longer term forecast expectations.

Cairn Hill Phase two

Phase two has the potential for a low capital and operating cost project, which IMX is looking to fast track development leveraging off existing approvals and infrastructure.

Production is targeted at 0.8mtpa to 1.2mtpa from the first half of 2012.

The planned development is for a dry magnetic separation to ±60% iron concentrate, with a very low capital and short approvals process.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/17946/imx-resources-additional-cairn-hill-ore-supply-agreements-with-new-chinese-customer-17946.html