Gindalbie Metals Ltd., a Perth based miner, announced today that it has sealed the iron ore deal with its Chinese joint venture partner Angang Group International Trade Corporation (Ansteel). The deal is worth $A70.6 billion and is considered as the largest ever trade deal in the history of Australia.

The trade deal has been signed for a time period of 30 years with the Karara iron ore mine of Gindalbie in the Midwest region of Western Australia. Gindalbie also said that Ansteel was paying full market price for the iron ore.

"The pricing structure embedded in these contracts reflects the high quality and niche market position of magnetite concentrate in the global iron ore market," said Garret Dixon, managing director of Gindalbie.

According to the new off take agreement, the first shipment to China is expected to occur in the second half of 2011. Gindalbie said that Karara has the potential to produce more than 30 million tons per annum for 30 years. The company also said that Karara will start at around 10 million tons per annum.