PERTH (miningweekly.com) – Magnetite miner Grange Resources has reported that concentrate production for the three months to June declined compared with the previous quarter and the previous corresponding quarter, as it continues to rebuild production after the 2012 North Pit wall failure.

Concentrate production for the period under review dropped to 397 075 t, from 453 410 t produced in the March quarter, and 606 929 t produced in the previous corresponding period.

“While we are disappointed with the grade of ore extracted from our alternate mining operations during the quarter, we were able to maximise production and deliver into our shipping schedules by increasing the amount of ore processed through the concentrator,” MD Wayne Bould said.

He told shareholders on Thursday that Grange expected weight recovery to improve significantly in the fourth quarter, once access to higher-grade material from the main ore zone of the North Pit was re-established.

This higher-grade material was expected to improve concentrate yield and pellet production and offset the current lower weight recoveries, while allowing Grange to produce some two-million tonnes of iron-ore pellets in 2013.

During the quarter ended June, variations to the shipping schedule impacted on sales, with a total 380 290 t of product sold during the quarter, generating a revenue of A$10.3-million.

Meanwhile, Bould noted that the timing of capital projects continued to be rescheduled, given the volatile market and the challenging operational conditions, to ensure that these projects were aligned with effective condition monitoring and preventative management processes.

“The Grange board is satisfied with the status of the feasibility studies for the Southdown project and remain committed to finding an equity partner for a strategic share of the company’s interest in the project,” he added.

In November last year, Grange announced that it would “significantly reduce” spending on its 70%-held project, spending only A$2.5-million during 2013 and reducing the project management team from 24 to 6.

The A$2.8-billion Southdown project is jointly owned by Grange and Japan’s Sojitz Resources and Technology Australia, which holds a 30% interest.