https://www.miningweekly.com

Arrium costs outstrip iron-ore prices

20th April 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Higher costs during the quarter ended March resulted in ASX-listed Arrium Mining selling its iron-ore product at a loss.

The miner reported on Monday that average costs loaded on ship reached A$48.2/t during the quarter, up by A$2.50/t from the previous quarter. The increase in costs was owing to a short-term increase in the waste-to-ore strip ratio in some pits, as the miner transitioned its work to focus on the lower-cost Middleback Ranges operation, in South Australia.

Higher costs were also reported at the Peculiar Knob operation.

Total cash costs for the quarter reached A$66.90/t, down A$3.3/t as the miner implemented a range of cost reduction initiatives, which included mothballing its Southern Iron mining operation, in order to reset the cost base of the remaining operations.

However, with the price of iron-ore falling significantly during the last quarter, Arrium obtained an average price of $46/t.

Meanwhile, the redesign of the mining business was expected to deliver some nine-million tonnes a year from the Middleback Ranges operation, with targeted cash costs of A$37/t loaded on ship, and A$57/t delivered into China.

It was expected that the full implementation of the redesign would be conducted by the end of 2015.

Arrium noted that given the further decline in the iron-ore prices since the redesign was first announced in January, the company was now looking to identify further volume, grade or cost options to further optimise the Middleback Ranges operation.

Edited by Creamer Media Reporter

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.111 0.145s - 88pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: