Bellzone Mining has taken another positive step forward at its smaller-scale Forecariah mine in Guinea by signing a life-of-mine offtake agreement with Glencore. The commodity trader will buy 50 per cent of high-grade iron ore production for the mine, with Bellzone receiving a large percentage of the prevailing benchmark price for iron ore at the time of loading. The company's Chinese joint venture partner - which controls the other 50 per cent of production - has the option to tag along in the deal should it wish.
Broker Fairfax notes that once the Chinese partners start seeing cash flows from Forecariah, they will be better positioned to keep their $2.7bn (£1.7bn) commitment to fund and develop the infrastructure required for Bellzone’s much larger Kalia iron ore project farther inland.
