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Western Areas reports lower cash costs

Western Areas reports lower cash costs

Photo by Bloomberg

28th January 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Nickel miner Western Areas’ focus on cost reduction has paid off, with the miner reporting on Tuesday that unit cash costs for the six months ended December were well below its full-year guidance.

In the December quarter, unit cash costs of production reached A$2.54/lb, bringing half-year cash costs to A$2.41/lb, which was well below the guidance of between A$2.80/lb and A$2.90/lb.

Western Areas produced 7 407 t of nickel in the December quarter, compared with 8 290 t in the previous quarter.

Production at the Flying Fox mine, in Western Australia, was down to 3 791 t during the quarter, compared with the 4 200 t produced in the previous quarter, but in line with the forecast, Western Areas said.

At the Spotted Quoll mine, also in Western Australia, Western Areas produced 3 616 t of nickel during the quarter, compared with the 4 090 t produced in the three months ended September.

The Cosmic Boy nickel concentrator produced 6 427 t of nickel in the December quarter, processing 148 901 t of ore at an average grade of 4.9% nickel, which produced 43 012 t of concentrate grading 14.9%.

During the quarter under review, Western Areas sold 6 409 t of nickel.

Edited by Creamer Media Reporter

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