Gindalbie sealed a $US65 billion iron ore deal with its Chinese joint venture partner which has been declared to be Australia's largest ever trade deal. The trade deal has been signed for a time period of 30-years with its Karara iron ore mine in the Midwest region of Western Australia.

Gindalbie has implemented the plan to strike a deal with Karara as it is of the view that the site has the capacity to manufacture 30 million tones of minerals every year for the period of 30 years.

Garret Dixon, Gindalbie's Managing Director, has commented that Ansteel will be paying the contracted amount at the market price for the iron ore. It has been decided that the ore will be shipped to plant located in northern China.

Mr. Dixon said, "For Ansteel, Karara becomes a strategic, long term, cost effective source of iron ore for their expanding steel making facilities". It has been predicted that demand of iron ore will go high this year which will increase the iron ore prices and when Karara will be in full production swing, it will stimulate the prices more.

At 1209 AEDT, the shares of Gindalbie went up by 3.5 cents.