PERTH (miningweekly.com) – Magnetite pellet producer Grange Resources has reported a decline in production after a ten-day downtime at its Tasmanian concentrator as part of its annual equipment shutdown.
During the three months to March, Grange produced some 504 170 t of magnetite pellets, compared with the 619 414 t produced in the previous quarter, from 558 337 t of concentrate.
The miner told shareholders that the shutdown was staged to allow for a limited downtime, with full production achieved 12 days after. The shutdown allowed the company to continue with the phased refurbishment and replacement of critical process infrastructure for a planned future replacement of the autogenous mills at the concentrator.
Grange MD Wayne Bould said on Thursday that the company had ended the quarter around 2% ahead of the scheduled mine plan movements.
During the quarter under review, Grange sold some 362 402 t of iron-ore products, compared with the 594 291 t sold during the December quarter, at an average realised product price of $138.82/t.
Bould pointed out that iron-ore market conditions softened through and after the Chinese New Year, and were subject to further downward pressure for the remainder of the quarter.
“Iron-ore prices slipped and the spot market slowed considerably as port and mill stockpiles were wound back and the availability of credit in China tightened.”
He noted that the company had adopted a strategic approach to sell product for value, rather than volume under the current market conditions, with a plan to review this thinking on a regular basis, going forward.