Fortescue Metals Group Limited (Fortescue Metals), an Australia-based developer of pilbara iron ore and infrastructure project, has terminated biodiesel supply contracts with Australian Renewable Fuels Ltd. (Australian Renewable Fuels) for its Cloudbreak iron ore mine in Western Australia. Termination is due to the contractor did not meet certain conditions. Australian Renewable Fuels had received a notice of termination from Fortescue Metals, further to contracts signed in September 2008.
The original supply agreement … was conditional on ARF obtaining finance for, and constructing, the required biodiesel blending facility at the Cloudbreak mine site, which ARF has unfortunately been unable to achieve in the timeframe required, a spokesman from Fortescue Metals.
Fortescue remains in discussions with ARF about alternative biodiesel supply and infrastructure agreements.
Australian Renewable Fuels said Fortescue Metals had indicated it was reviewing its overall strategy with regard to fuel blending.
Australian Renewable Fuels also said that it was reviewing Fortescue Metals’ invitation to submit a new proposal.