announcement more good news:)

MOUNT GIBSON IRON LIMITED 2003-01-15 ASX-SIGNAL-G

HOMEX - Perth

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Mount Gibson Iron Limited's Marketing Manager, Mr Warwick Davies, has
reported his high level of confidence of finalising medium term sales
contracts within the next few months, for all of the Company's of 1.5
Mtpa production of iron ore from its new mine at Tallering Peak,
after visiting prospective Chinese customers last month.

Mr Davies has reported that the Tallering Peak ore, which is
extremely dense and hard with high iron content and low contaminants,
is proving extremely attractive to steel makers because of its
minimal degradation during handling and its inherent strength in the
blast furnace. An added attraction is its relatively high content of
magnesium oxide, which reduces the amount of flux that must be added
during the iron making process for the removal of slag.

The Company has restricted its potential buyers in both China and
Japan to those steel mills operating through ports limited to
receiving Panamax size vessels (65,000 DWT), similar to those which
will be able to be loaded at Geraldton. Sales contract negotiations
are focused on a number of steel mills located in north-east and
central China, as well as two mills in Japan.

A subsidiary of international steel trader, Stemcor Limited, has
entered into a contract to purchase 500,000 tpa of lump ore for the
life of the Tallering Peak mine and Glencore International SA has
recently agreed to purchase 100,000 tpa of lump ore and 250,000 tpa
of fines for its pig iron plant near Nanjing. Glencore has already
contracted to purchase all of the planned production from the
Company's proposed second iron ore mine at Mt Gibson.

Mr Davies has also reported the current high level of iron ore demand
in China will continue throughout 2003, strengthening the outlook for
price increases.

Mr Brian Johnson, Managing Director of Mount Gibson Iron Limited,
said that the generally anticipated 3% to 4% increase in iron ore
prices for 2003 together with operating cost savings becoming
apparent as the Company finalises its contracting arrangements for
the Tallering Peak Project, should largely offset the impact of
recent increases in the exchange rate.


A Dent
COMPANY SECRETARY

Enquiries: Mr Brian Johnson
MANAGING DIRECTOR
Telephone: 08-9485-2355
E-mail: [email protected]