|CD International Enterprises, Inc. (CDII) Enters Letter of Intent to Purchase Iron Ore|
CD International Enterprises, Inc. (OTC: CDII), a U.S.-based company that sources industrial commodities and provides business and management corporate consulting services, this morning announced its entry into a letter of intent with a Honduras-based company to purchase iron ore (62% to 63% Fe). Per the terms of the agreement, CDII agrees to purchase 100,000 metric tons of iron ore per month over a 12-month period, equating to a total shipment of 1.2 million metric tons over the life of the agreement. The initial 12-month contract values approximately $84 million on basis of the current CIF China price, and the deal also includes an option to increase monthly supply to 500,000 metric tons per month.
“We are pleased to enter this letter of intent, as we have been proactively sourcing iron ore supply for our Chinese clients,” Dr. James Wang, chairman and CEO of CD International, noted in this morning’s news release. “This newly sourced supply could provide us a stable supply of iron ore for our clients in China. Under our new mineral trading model, we believe we can create a profit center while we limit exposure of our capital to market risk. Imported iron ore to China will continue at the levels we are seeing now, or perhaps even grow as we go forward. We actively pursue new mineral suppliers for our clients in China in both South and North America. As we move forward, we believe we are well positioned to take advantage of increasing demand of iron ore by China in years to come.”
This morning’s update comes as Chinese customs data suggests rising demand for iron ore. Per the news release, China’s imports of iron ore rose 7.5 percent in 2016 to a record of 1.024 billion tons. Continuing this trend, China’s March 2017 iron ore imports were up 11 percent year-over-year to 95.56 million tons, according to data from the General Administration of Customs, marking the second-highest monthly total on record.
CDII’s latest update follows a series of moves designed to capitalize on the forecast growth of the cannabidiol (CBD) market. Last month, the company announced the launch of Green Products Distribution Inc., a wholly-owned subsidiary focused on the sale of CBD-based products in Chinese-speaking communities.
For more information, visit the company’s website at www.CDII.net
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