Gindalbie andAnsteelhavean off-takeagreementforKarara iron that has Ansteel taking 100% of the production of the mines to Ansteel's new 6.5 million tons per year Bayuquansteel mill.
Ansteel is already exploring opportunities to expand its steel producing capabilities at Bayuquan above 6.5Mtpa in expectation of additional iron from Karara.
The Karara iron ore project begain in late 2010, and is expected to see initial production of around two million tons at some point in 2012, according to Gindalbie.