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Northern Iron puts production in perspective

4th June 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Iron-ore miner Northern Iron has lowered its production expectations for the current quarter to between 400 000 t and 425 000 t of dry concentrate, down from the previous guidance of 550 000 t at its Sydvaranger project, in Norway.

The miner has previously warned shareholders that the current quarter’s production would be affected by technical issues.

Northern Iron noted that the Sydvaranger project returned to normal operations on Monday, 14 days after experiencing a radial bearing failure. Concentrate production has now restarted and the company was focused on ramping up production to the higher rates experienced during February and March.

An investigation into the radial bearing failure has identified the cause as being a combination of procedural and process deficiencies in the control of the hydraulic system temperatures. During the course of the investigation, the issues were rectified and a reoccurance of this type of failure was not expected, the company said.

Northern Iron said on Tuesday that as a result of the production disruption and the general price weakness in the iron-ore market, the company was implementing further capital and operating cost reductions to help maintain liquidity.

Edited by Creamer Media Reporter

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