Admiralty Resources has secured a pivotal contract with global trader Trafigura to market its Mariposa Iron Ore, marking a key step towards commercial production and revenue generation.
- Contract with Trafigura for 150,000 WMT iron ore shipments
- Pricing linked to global Metal Bulletin indices with quality penalties
- Shipments scheduled from December 2025 to December 2026
- Strengthens commercialisation and market access for Mariposa Project
- Contract includes robust legal protections and quality assurance
Strategic Partnership Secured
Admiralty Resources NL has taken a significant stride in advancing its Mariposa Iron Ore Project by signing a purchase contract with Trafigura Pte Ltd, a heavyweight in global commodity trading. This agreement, executed through Admiralty's Chilean subsidiary, sets the stage for international marketing and sale of Mariposa iron ore on an open-book basis, ensuring transparency and competitive buyer access.
Contract Details and Commercial Terms
The contract covers an initial 150,000 wet metric tonnes (WMT) of iron ore, to be delivered in three shipments over a one-year period starting December 2025. The ore boasts a high-grade iron content of 65%, with strict quality specifications and penalties for deviations, underscoring Admiralty's commitment to product excellence. Pricing is dynamically linked to the Metal Bulletin 65% Fe CFR North China Index, adjusted for quality and freight, reflecting current market realities.
Implications for Mariposa Project Commercialisation
This contract is more than a sales agreement; it represents a critical commercial milestone as Admiralty transitions from trial production to full-scale operations. Partnering with Trafigura grants Admiralty immediate access to global markets and expert commercial execution, which is vital for building a reliable sales pipeline and securing long-term revenue streams. The transparent pricing mechanism and legal safeguards embedded in the contract also mitigate risks inherent in commodity trading.
Broader Company Context
Mariposa is Admiralty's flagship iron ore project, with substantial mineral resources and reserves already delineated. The project benefits from strategic infrastructure proximity, including rail and port access in Chile, facilitating efficient logistics. Admiralty's broader portfolio includes other promising exploration projects in Chile and a cobalt-nickel venture in Western Australia, positioning the company for diversified growth.
Looking Ahead
Admiralty plans to update the market as shipments commence from Las Losas Port, providing investors with tangible progress markers. The flexibility in shipment volumes and timing within the contract allows Admiralty to scale operations in response to market demand and production readiness, a prudent approach in the volatile iron ore sector.
Bottom Line?
This Trafigura contract sets Admiralty on a clear path from production to market, but execution and market conditions will be key to sustaining momentum.
Questions in the middle?
- How will actual shipment volumes and timing align with the contract's flexible terms?
- What impact will global iron ore price fluctuations have on Admiralty's revenue under this pricing formula?
- Can Admiralty leverage this partnership to expand beyond the initial 150,000 WMT volume?