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Mt Gibson ups sales guidance

Mt Gibson ups sales guidance

Photo by Reuters

16th February 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Mount Gibson Iron on Monday increased its sales guidance for the 2015 financial year by 200 000 t, to between 5-million and 5.4-million tonnes, after securing additional rail haulage from its Extension Hill mine, in the Mid West.

The Extension Hill mine’s nominal yearly export capacity increased by 17%, to 3.5-million tonnes, with the addition of an extra train path from the Perenjori rail siding. The extra haulage started on February 15.

Mount Gibson noted that the increase in export capacity from Extension Hill would also enable further incremental improvements in unit costs, complementing the company’s ongoing cost reduction and efficiency improvement programme.

The increased haulage comes as good news, following the miner’s January announcement of a noncash impairment of between A$850-million and A$950-million in its interim results for the period ended December. The impairment comes in light of the declining market conditions, as well as recent development at Mount Gibson’s Koolan Island project, which was idled in December last year.

Edited by Creamer Media Reporter

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