PERTH (miningweekly.com) – ASX-listed iron-ore miner Northern Iron has reported an 11% decline in production during the quarter ended March, with the company blaming lower ore grades and unplanned downtime at its Norwegian project.
Concentrate production during the March quarter reached 501 000 t, compared with the 563 000 t produced in the previous quarter, while concentrate sales remained relatively unaffected at 550 000 t, compared with the 552 000 t shipped in the three months to December.
Northern Iron said on Wednesday that despite the challenges, the volume of ore milled during the quarter was 5% higher than the previous corresponding period; however, concentrate production was down 10% on the 2014 figures owing to the lower feed grades.
Looking ahead into the next quarter, the miner said that its focus would remain on completing a primary mill reline shut during May, which was expected to last for six days, as well as coordination along the production chain from pit-to-port to maintain adequate stock to the milling circuit.
Furthermore, Northern Iron’s focus would also be on continued cost improvement initiatives, including the in-housing of analytical services, tyre services, mine fleet maintenance services and increased scrutiny of contractor activities, invoicing and compliance to contract.
The company told shareholders that it would work to preserve cash and reduce costs, while securing financial support from its key stakeholders to restructure and improve its working capital and operating position for the longer term.
Northern Iron in March warned that more work would be required to secure the company’s financial future, despite the implementation of a number of contract renegotiations.