IMX seals deals for Cairn Hill
JOHANNESBURG (miningweekly.com) – ASX-listed miner IMX Resources has completed sales contracts for all the iron-ore expected from its Cairn Hill mine, in South Australia, during 2014.
During the year to June, IMX sold about 1.76-million tonnes of ore from Cairn Hill, with an average cargo weight of around 76 000 t. A similar outcome was expected for 2014.
The miner said that the terms of the contracts reflected the strong demand for Cairn Hill ore, with the price discounts to the benchmark 62% iron Index and quotation periods for pricing both in line with this year’s sales agreement.
MD John Nitschke said that the 2014 contracts were on attractive terms, providing IMX with strong and reliable cash flow.
“The buoyant iron-ore market and strong demand for Cairn Hill ore from our existing customers ensures that we will enter the new year with financial strength and certainty.”
Nitschke said that the revenue generated by the Cairn Hill mine differentiated IMX from several of its peers, as it enabled exploration and development activities to be funded from operational cash flow.
“We are assessing the potential of a Phase 2 development to extend the life of Cairn Hill and a decision on this is expected by the end of the March quarter.”
The Phase 2 magnetite project will produce around 1.2-million tonnes a year of magnetite concentrate from 1.9-million tonnes a year of run-of-mine ore.
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