LONDON — Australian magnetite producer Grange Resources Ltd. has opted to use AMM sister publication Metal Bulletin’s weekly iron ore pellet price, 65- to 66-percent metal content, as its reference price for all iron ore pellet sales to customer Jiangsu Shagang International Trade Co. Ltd.

The change will be applied retrospectively to all shipments made to Zhangjiagang, China-based Shagang since April 1, Grange Resources said Monday.

Metal Bulletin’s 65- to 66-percent metal content pellets stood at $145 to $149 per dry tonne c.f.r. China on Nov. 16.

Under the revised agreement, Shagang’s iron ore pellet offtake tonnage from Grange’s Savage River production site in Tasmania, Australia, will be 1 million tonnes per year.

"The agreement will put Grange in a strong position to facilitate the further development of key relationships with major iron ore buyers," Grange managing director Richard Mehan said.

In March 2011, Burnie, Australia-based Grange revised its annual contracts to a quarterly and monthly basis, shortening contract durations to better reflect market prices.

A version of this article was first published by AMM sister publication Metal Bulletin.