Mount Gibson Iron Ltd. (MGX.AU) said Friday it has agreed contract iron ore prices in line with the settlement struck between Rio Tinto Ltd. (RTP) and Nippon Steel Corp. (5401.TO).

The Perth-based miner said it has notified existing long-term iron ore contract customers that lump prices will be US$1.12 per dry metric ton unit and fines at 97 U.S. cents per dry metric ton unit, effective April 1, 2009.

Mount Gibson's customers include China's Shougang Concord International and APAC Resources Ltd. (1104.HK), which launched a bail-out of the miner last year when other steelmaking customers reneged on long-term contracts amid falling demand and prices.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com
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