The launch of IMG Mexico coincides with a letter of intent signed this week for a joint venture investment into a junior iron ore mine resulting in an annual supply guaranty of 700,000 metric tons of high-grade iron ore for export to China against IMG’s existing Chinese sales contracts.
IMG anticipates taking daily delivery of iron ore beginning in December 2010 and projects exporting its first 70,000 metric ton shipment from Mexico by February 2011.
IMG Mexico aims to duplicate this joint venture investment structure with multiple additional mining partners to maximize the available port export capacity in each region.
The company has identified further investment targets allowing for increases in total monthly iron ore exports to greater than 500,000 metric tons by the fourth quarter of 2011.
