JOHANNESBURG (miningweekly.com) – Production at the Savage River mine, which ASX-listed Grange Resources owns and operates in Tasmania, fell in the June quarter, owing to a planned maintenance shutdown, which added to costs in the three-month period.
Grange produced 520 525 t in the June quarter, compared with 639 517 t in the March quarter, while unit costs increased to A$89.11/t, from A$63.27/t in the previous quarter. The company explained on Friday that the increase in unit costs was consistent with the lower output and the costs associated with the planned maintenance programme.
The miner shipped 795 745 t of iron-ore in the quarter, which is an increase on the previous quarter’s shipments of 670 433 t. The average price received during the quarter was $67.69/t, up 11.7% on the $59.02/t achieved in the March quarter.
Grange stated that the upward movement in prices reflected an increased demand for the company’s high-quality, low-impurity products, which had resulted in the pellet premium strengthening, together with the rebound in benchmark 62% iron content prices.
“The price of iron-ore slightly recovered in the quarter, although it remains volatile. The company continues to focus on cost reduction, while maintaining a safe and sustainable operation,” commented CEO Honglin Zhao.