PERTH (miningweekly.com) – Norway-focused iron-ore miner Northern Iron has reported new production records during the three months to June, with its Sydvaranger mine delivering 626 000 t of concentrate, up 13% on the previous quarter.
Over the last six months, the mine produced 1.17-million tonnes of concentrate, which was equivalent to a yearly production rate of slightly above 2.3-million tonnes.
Concentrate sales also hit a record high during the June quarter, with the company selling about 610 000 t during the period, up 4% on the previous quarter.
However, despite the higher sales volumes, Northern Iron reported that the average sales price during the period was 21% lower than the previous quarter, resulting from the significant decline in global iron-ore prices.
The company told shareholders that in response to the declining iron-ore price, Northern Iron was focusing on several cost improvement initiatives. A combination of cost, marketing and volume improvements programmes were aimed at offsetting the impacts of the current low market price environment, while progressive expansion plans would deliver increased value and long-term sustainability, the company said.
Northern Iron is also currently evaluating the feasibility of doubling production at Sydvaranger to 5.6-million tonnes of dry concentrate a year.