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Nullagine delivers another strong quarter for BC Iron

25th October 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner BC Iron has reported another strong quarter for production, with its Nullagine joint venture (JV), in Western Australia, delivering 1.61-million tonnes of ore during the three months under review.

The Nullagine mine consistently operated at 6.5-million tonnes during the quarter, which was in line with its guidance, and shipped a record 1.62-million tonnes, up 13% on the previous corresponding period.

The JV operation with iron-ore major Fortescue, also passed the milestone of exporting over ten-million tonnes of ore, since the first shipment in February 2011.

“This was an excellent quarter of consolidation with the JV demonstrating the capability to consistently operate in excess of a six-million tonne a year run-rate,” said BC Iron MD Morgan Ball.

Free-on-board operating costs for the September quarter were around A$31/t, which Ball said reflected the company’s strong cost management focus and the ongoing impact of the rail and port prepayment to Fortescue.

This prepayment would continue to be reflected in the reduced cash costs, until the first half of the second quarter in 2014, after which cash costs would increase to between A$46/t and A$50/t over the life of the mine.

BC Iron holds a 75% interest in the Nullagine JV, with Fortescue holding the balance.

Edited by Creamer Media Reporter

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