Territory Resources has secured long-term Chinese sales commitments for iron ore production from its Frances Creek operations in the Northern Territory .

The company has entered into agreements with three steel producers in China .

The long term sales commitments have been negotiated to cover 2 million tonnes/year of production of lump and fines ore from Frances Creek for the next three years.

Annual pricing will be benchmarked each year against major annual long term contracts for Western Australian iron ore.

The completion of the agreements marks a significant milestone for Territory, providing a foundation for the company to continue to maintain a fully sold position despite the difficult market circumstances facing all iron ore producers.

Territory’s chairman Andrew Simpson says: “With the assistance of the Noble Group, Territory has worked very hard to complete the qualification process with a number of key customers in China for both the lump and fines products from Frances Creek .

“During this time, the company has earned a reputation as a reliable supplier of premium quality, high-grade lump and fines ore, establishing a very strong foundation on which we have now been able to secure these long-term sales commitments.”

Territory remains on track to complete the ramp-up of production at Frances Creek to a rate of 2 million tonnes/year in 2009, with a number of operational enhancements completed at the mine.

The company has a strong focus on achieving further optimizations in 2009, including a further reduction in operating costs.

www.territoryresources.com.au