Element 25's ship shuffle pays off
PERTH (miningweekly.com) – ASX-listed Element 25 has seen shipping costs reduced by about 45% from the Utah Point facility, at Port Hedland, after shifting from Handymax size vessels to Supramax vessels.
The company told shareholders on Thursday that Covid-related shipping congestion had resulted in a sharp increase in global shipping costs, which significantly impacted the company’s gross margins for the first two manganese shipments from its Butcherbird operation, in Western Australia.
A decision was taken in September to transition from the Handymax size vessels to the Supramax vessels, which the company said had successfully resulted in a tariff reduction for the third concentrate shipment of around 45% from peak rates to date.
Element 25 noted that while this was an important cost rationalisation exercise, shipping costs remained one of the key sensitivities in relation to costs and margins going forward until these macroeconomic conditions ease over a sustained period.
“The company is in constant discussion with its shipping brokers and offtake partner to explore strategies to manage and optimise freight costs throughout the business,” the company said in a statement.
The Butcherbird operation is expected to achieve nameplate capacity by the first quarter of 2022, with the Stage 1 processing plant to produce 365 000 t/y of high-quality manganese concentrate over a mine life of about 40 years, prior to a proposed expansion in Stage 2.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation