North Pit delivers better output for Grange
PERTH (miningweekly.com) – Magnetite miner Grange Resources has reported a significant increase in concentrate and pellet production for the three months to December, as high-grade ore in the North pit of its Savage River operations, in Tasmania, was accessed.
During the quarter ended December, Grange delivered 632 906 t of concentrate, compared with the 472 108 t delivered during the previous quarter. Pellet production during the quarter was up by 39% on the September quarter, to reach 619 414 t.
“During the quarter, we continued to leverage our return to higher-grade ore in the North pit to mine and produce 632 906 t of iron-ore products at an annualised rate in excess of 2.5-million tonnes a year, with the grade averaging 46%,” said Grange MD Wayne Bould.
He noted that the quarter also saw a strong return of interest in high-grade pellet products from core Chinese markets, which resulted in Grange achieving an average sales price of $149.39/t.
Some 565 816 t of iron-ore pellets were sold during the quarter under review, along with 61 t of iron-ore concentrate.
“Grange’s performance in the fourth quarter caps off a difficult transitional year from an operational perspective, and positions us to move into 2014 on a more positive note,” said Bould.
He pointed out that the company had recovered from the June 2012 wall failure, regained access to the high-grade main orezone in the North pit and returned to production at planned rates.
“In addition, we have returned unit operating costs to competitive annualised rates in a sales market which is currently supporting a return of quality product premiums.
“At current operating levels, we expect to generate solid cash flows through 2014,” Bould added.
For 2014, Grange was expecting to produce some 2.3-million tonnes of iron-ore products.
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