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China Railway places order for Hot Briquetted Iron from Northern Iron Corp.
China Railway Materials Import and Export Co. Ltd. orders 900,000 metric tonnes of Hot Bri...
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[{"type":"text","content":"\n\n\n\n\n\nChina Railway Materials Import and Export Co. Ltd. orders 900,000 metric\n tonnes of Hot Briquetted Iron from Northern Iron Corp.\n\n\nVANCOUVER, May 23, 2012 /CNW/ - Northern Iron Corp (\"Northern\" or the \"Company\") (TSX-V: NFE) (OTCQX-\n NHRIF) (FRANKFURT: N8I) announces the receipt of an order from China Railway Materials Import\n and Export Co. Ltd. (\"CRM\") for 900,000 metric tonnes of Hot Briquetted Iron (\"HBI\") to be delivered\n in 2016 (the \"Order\").  Payment for the Order will be secured by an\n irrevocable letter of credit of the prime bank of the Peoples' Republic\n of China.\n\n\nBasil Botha, Northern's President & CEO stated, \"The order received from\n China Railway is approximately two thirds of our anticipated annual\n production of HBI and an important milestone for Northern. Our team has\n worked extremely hard to secure this off-take agreement for HBI and\n will continue to work with a number of international companies who\n could potentially become suitable joint venture partners\".\n\n\nResearch provided by the International Iron Metallics Association, shows\n HBI currently has an average selling price between $403 and $443 per\n tonne depending on the market location. As of the date of this press\n release, a feasibility study has not been completed by Northern and\n there is no certainty the proposed operation will be economically\n viable.\n\n\nAbout China Railway Materials Co. Ltd.\n\n\nRail transport is the most commonly used mode of long-distance\n transportation in the People's Republic of China. Almost all rail\n operations are handled by the Ministry of Railways, which is part of\n the State Council of the People's Republic of China. CRM is one of 8\n divisions of China Railway Material Commercial Corp., a state owned\n corporation of the Ministry of Railways.\n\n\nIn October 2008, the Chinese State Council approved a new railway\n investment plan for up to 2 trillion Chinese Renminbi (\"RMB\") (US$292\n billion) to be completed by 2020. China's railway transport volume is\n one of the world's largest, carrying 25 percent of the world's total\n railway workload.\n\n\nChina Railway Material Commercial Corp is one of China's largest\n commodity buyers, with annual revenues over RMB 51 billion (US$8.1\n billion) and is ranked 59th in the top 100 companies in ...