Nullagine's quarterly production drops as ops are suspended
PERTH (miningweekly.com) – Iron-ore production and shipments at the Nullagine joint venture (JV), in Western Australia, decreased during the three months to December 31, owing to the change-over of road haulage contractor and a slower-than-expected ramp-up by the new contractor.
In early December, BC Iron suspended direct shipping ore (DSO) operations at the JV, citing the ongoing material fall in the iron-ore price.
For the three months under review, the mine produced 1.14-million tonnes of ore, compared with the 1.32-million tonnes produced in the previous quarter, with only 0.87-million tonnes shipped, compared with the 1.4-million tonnes shipped in the September quarter.
Following the decision to temporarily suspend the operations, BC Iron’s operational focus has been on achieving its final DSO tonnages for shipment. However, the company noted that the JV continued to assess options for its 11.1-million-tonne low-grade stockpile.
The trial to sell an unprocessed parcel of low-grade ore to JV partner Fortescue at its Christmas Creek operation, under a mine gate sales agreement, was expected to be completed in February.
“The decision to suspend DSO operations at Nullagine was an extremely difficult one, but the right one for our shareholders,” said MD Morgan Ball on Thursday.
“We will continue to assess alternative operating models for Nullagine, such as the potential low-grade operation, and also ensure we are well placed to restart DSO operations if there is a sustained price recovery, or if further cost savings are identified.”
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