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- Tombador Iron (TI1) secures contracts to supply its high-grade iron ore to the Asian market
- Tombador and its trading partner, Trafigura, sought Asia as a result of “subdued demand” for iron ore in the European export markets
- The company will supply one lump and one fines shipment of approximately 45,000 wet metric tonnes each to the Asian market
- The company says it plans to keep the door open to further sell its product in both domestic and export markets depending on market conditions
- TI1 shares are trading at 3 cents at 2:46 pm AEDT
Tombador Iron (TI1) has secured contracts to supply two export shipments of its high-grade iron ore to the Asian market.
The company and its trading partner, Trafigura, have opened the door to the Asian market as a result of “subdued demand” for iron ore in the European export markets in recent times.
Tombador and Trafigura will supply one lump and one fines shipment of approximately 45,000 wet metric tonnes each. The shipment is expected to be delivered in the March 2023 quarter.
TI1 CEO Gabriel Oliva said it was the right opportunity given Europe’s current status.
“This is a great opportunity for the company to access the Asian markets while the European market recovers, unlocking volumes with larger vessels via Enseada Port,” Mr Oliva said.
Tombador said the shipments were made possible through larger vessels of 45,000 wet metric tonnes through the port of Enseada in Maragogipe, Brazil.
The company said it would keep the door open to further sell product in both domestic and export markets depending on market conditions.
“We look forward to working with our trading partner to continue to progress with our sales,” Mr Oliva said.
Tombador first produced premium-grade lump and fines hematite iron ore in May 2021 from a low-capex open-pit mining operation.
The company said it remained focussed on rapidly ramping up production at the Tombador project in a bid to maximise the potential of the operations and return dividends to its shareholders.
TI1 shares were trading at 3 cents at 2:46 pm AEDT.
