Sierra Rutile cuts costs, expects higher H2 production
JOHANNESBURG (miningweekly.com) – Aim-listed Sierra Rutile, which on Tuesday reported a “modest underperformance” in first-half rutile output, expects to increase its production rates and further cut unit costs as it moves to higher-grade mining areas in the second half of the year.
The mineral sands producer had achieved a 3% year-on-year increase in rutile production to 27 842 t for the second quarter.
However, it failed to meet its forecast rutile volumes for the first half of the year, with the company noting that rutile production from tailings had been lower than planned during the second quarter as a result of higher-than-expected nonvaluable heavy minerals in the tailings concentrate.
Further, ilmenite production fell 12% year-on-year to 8 410 t for the second quarter, while zircon concentrate output decreased by 37% year-on-year to 488 t.
Despite the lower production volumes, Sierra Rutile reduced its operating cash cost per tonne to $609 for the first half of this year, compared with the $799/t reported for the first half of 2013.
The company expected unit cost reductions to improve further in the second half as a cost reduction programme continues and as production volumes increase.
Second-half output was expected to be higher than volumes achieved in the first half of the year, owing to the mining operations transitioning to higher-grade zones, concentrate blend ratios being optimised and improving recoveries following the completion of an upgrade of the mineral separation plant.
The plant, which was being upgraded from the current 165 000 t/y processing capacity to over 200 000 t/y, was on track for completion in the second half of this year.
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