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Production of Savage River Iron Ore Pellet Gets Back on Recovery Track
= Production stood at 2.19 MT and sales at 2.26 MT on a CY basis =
Australia's Grange Resources Limited ("Grange") has announced that its performance on production and sales (shipping) of the Savage River iron ore in Tasmania improved considerably for the Oct-Dec quarter. According to the company, access to main ore zones has been restored after successful dewatering in the North Pit, which helped mining (production) and shipping (sales) volumes to rebound from the previous quarter; although the figures remained substantially lower year-on-year (y/y).

Production and shipping (sales) volumes for the Oct-Dec quarter are as follows: Production stood at 0.517 mil tons (down 23.4% y/y but up 18.2% quarter-on-quarter (q/q)), and shipping (sales), negatively impacted by production cuts in the first half of the year, fell to 0.466 mil tons (down 28.6% y/y and 6.6% q/q). As a result, the production of pellet on a calendar year (CY) basis stood at 2.186 mil tons (up 15.3% y/y) and the sales at 2.258 mil tons (up 25.2% y/y)

Meanwhile, the pellet price, which for the Jul-Sep quarter shot up by 31% q/q to US$132.41 (FOB, Port Latta), fell back from the peak for the Oct-Dec quarter by 15% (US$19.8) to $112.61.

During the Oct-Dec quarter, Grange secured agreements to sell products from 2019 to 2021 using benchmark 65% (from previous 62%) Fe fines index for pricing its iron ore pellet, which is, according to Grange's statement, "a good achievement."
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last modified : Thu 14 Feb, 2019 [10:09]
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