PERTH (miningweekly.com) – The chairperson of iron-ore miner BC Iron, Anthony Kiernan, has told shareholders that the company was considering stepping outside of the iron-ore space.
Speaking at the annual general meeting, Kiernan said that among the assets that BC Iron acquired in the merger with Iron Ore Holdings at the end of last year, were a number of early-stage, non iron-ore exploration projects.
“As part of our longer term strategy, we are having a very close look at these from an exploration point of view with a real preparedness to step outside the iron-ore space,” Kiernan said.
“The company has a good balance sheet and an extremely competent operating team, so why not be prepared to utilise these.”
Despite BC Iron’s possible new venture outside of the iron-ore space, Kiernan said the company’s focus would remain on its Nullagine joint venture (JV), with major Fortescue Metals, as well as the development of the Buckland and Iron Valley projects, which were also acquired with the Iron Ore Holdings acquisition.
“The Nullagine JV operation has been performing well and costs have been reduced materially through a range of proactive initiatives,” Kiernan said, adding that BC Iron had worked to ensure that its operations were conducted efficiently and cost effectively during the low iron-ore price environment.
In order to save costs, BC Iron had previously swapped out its mining contractor and road haulage contractor, and had agreed to trial an alternative structure for its rail and port costs with JV partner Fortescue.
“Under this structure, the charges we pay to Fortescue vary with the iron-ore price. Under current trading conditions, this has materially lowered our cost base, and hence the company’s breakeven price,” Kiernan said.