Iron clad: Fomento signs second long term contract with Ping Xiang
Fomento Resources continued its long term association with the world’s top steel makers by signing its second long term contract for the supply of iron ore fines of the 58% Fe category with Chinese steel maker Jiangxi PXSTEEL Industrial Co, Ltd, in April 2010. (Formerly known as Ping Xiang Iron and Steel Company Limited)
The contract signed between Sociedade De Fomento Industrial Pvt Ltd, the oldest company of the Fomento Resources alliance of companies, Jiangxi PXSTEEL Industrial Co, Ltd and the supplier Daewoo International Corporation, envisages the shipment of 800,000 tonnes (0.8 million tonnes) of iron ore for five years.
This long term contract was entered into on December 14, 2009 and the formal signing ceremony between the three parties was held in Goa, India on April 27, 2010.
The presence of the President of the Jiangxi PXSTEEL Mr Jianmin Tu in Goa, along with his key team members signified the bond between the two companies and a further strengthening of their association, which began in 2006 when Sociedade De Fomento signed its first long term contract in China with Ping Xiang Iron and Steel Company, as Jiangxi PXSTEEL was known then. The original long term contract with a Chinese company was for the supply of 500,000 tonnes (0.5 million) of high grade ore- 62% Fe for five years.
Fomento Resources believes this association will further strengthen the company’s presence in China. It is proud of its association with Ping Xiang, since it entered into its first long term contract with the company.
Those present at the signing ceremony held at the Cidade De Goa Resort in Goa, included Mr Jeongwon Doh - Vice President of Daewoo International, Mr Auduth Timblo - Chairman of Fomento Resources and Mr Ambar Timblo - Managing Director. They were present along with key officials of the alliance.
Fomento Resources association with other steelmakers include Arcelor Mittal and the Japanese steel major Sumitomo Corporation.