High-grade iron ore producer Carpentaria Resources sees a strong need for a high-grade iron ore derivative product, and expects such a financial tool to bring efficiencies in pricing to the high-grade sector.
"In our view, there is a strong need for the high-grade iron ore derivative and, with the 65% Fe iron ore index increasing in relevance, anything that increases its liquidity and reduces volatility is welcome," Carpentaria managing director Quentin Hill told Fastmarkets on Tuesday November 20.The Singapore Exchange (SGX) will launch a high-grade iron ore derivative on December 3. The contract will be settled on the basis of Fastmarkets' daily 65% Fe iron ore index.Carpentaria Resources is developing a high-grade iron ore project called Hawsons in New South Wales, Australia. Through this project, the company expects to introduce a 70% Fe iron ore product to the market.Japanese trading house Mitsui & Co is participating in the feasibility study for the Hawsons project.Under the agreement, Mitsui will contribute A$5.4 million ($3.9 million) toward the cost of the project's...