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Grange warns of job losses at Tasmania mine

6th January 2016

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore pellet producer Grange Resources on Wednesday warned of redundancies at its Savage River mine, in Tasmania, citing the continued weakness in the iron-ore price among other factors.

Grange told shareholders that despite refurbishing the mills at Savage River during 2015, the company had achieved record pellet production. In addition, significant cost reductions were realised throughout the year.

The miner was also continuing with its optimisation strategy, which would be completed in early 2016, and was geared towards a continued reduction in costs, maximising margins and retaining free cash flow.

However, Grange noted that owing to the continued weakness in the iron-ore price and subdued demand for pellet product, combined with the optimisation study, redundancies would likely be made at the Savage River operation.

According to Australian government statistics, the price of iron-ore declined by 43% in 2015.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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