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Total iron ore production of 3.4 million wet metric tonnes (wmt) was 3%
higher than Q2 FY20 and up over 28% on the prior corresponding period
(Q3 FY19). Iron ore shipments of 2.9 million wmt were 12% lower than Q2
FY20.
Mining operations at Koolyanobbing were impacted by heavy rainfall
during the quarter while shipments were lower due to a slower than
expected ramp up of rail capacity. Koolyanobbing is forecast to produce
at an annualised run rate of 11 million tonnes per annum (Mtpa) during
Q4 FY20 with additional dump trucks commissioned and additional rail
capacity brought on line. Due to the lower shipments during the third
quarter, export expectations from Koolyanobbing have been lowered 19% to
between 7.1 to 7.6 million tonne (mt) for FY20.
Iron Valley produced 1.7 million wmt of product for the quarter, up
around 20% on each of the prior period and the prior corresponding
period. The additional production will support higher shipping tonnages
in Q4 FY20, with export expectations for FY20 increased 9% to between
6.6 to 7.0 mt.
MRL agreed a series of arrangements with BCI Minerals Limited (ASX: BCI,
BCI) that will enhance MRL’s iron ore footprint in the Pilbara region,
including the purchase of the Buckland Project from BCI for cash
consideration of up to $20 million and the optimisation of the existing
Iron Valley Agreement whereby BCI will participate in the capital
investment required to extend the mine life at Iron Valley.
Table: Iron Ore Summary
|
'000 wet metric tonnes |
Q3 FY20 |
Q2 FY20 |
Q3 FY19 |
|
PRODUCED |
SHIPPED |
PRODUCED |
SHIPPED |
PRODUCED |
SHIPPED |
|
Iron Valley |
1,684 |
1,323 |
1,391 |
1,535 |
1,368 |
1,788 |
|
Koolyanobbing |
1,752 |
1,574 |
1,938 |
1,745 |
1,303 |
1,518 |
|
TOTAL IRON ORE |
3,436 |
2,897 |
3,329 |
3,280 |
2,671 |
3,307 |
Iron Valley
Production ramped up mid-way in Q3, in line with the medium term mine
plan.
Mining commenced in the C10 pit during the quarter, aligned to the mine
expansion project. Four new bores were equipped to lower local
groundwater in the C8 pit. Development work in C8 concluded with mining
in this area focussed solely on delivering ore supply to the crushing
plant. Additional stockpiled material was crushed through the mobile
crusher to supplement saleable stock.
The Iron Valley crushing operations produced 1.7 million wmt of product
for the quarter. The additional crushed tonnes will support plans for
additional shipping in Q4.
Koolyanobbing
Mining operations commenced at the Mt Jackson pits during March in
addition to further stripping activities at Deception; this was
performed to open up ore tonnes and position the mine to achieve the Q4
ramp up to 11.0Mtpa. Mining at Koolyanobbing was additionally impacted
by heavy rainfall during the quarter with a total of 189 millimetres of
rain recorded from January to March, slowing down mining operations.
Additional 150 tonne and 205 tonne dump trucks were mobilised to site
and commissioned for scheduled ramp-up to 11 Mtpa. Ore processing
exceeded ore shipped for the quarter with inventory at the mine
continuing to be built for the ramp-up.
Additional rail capacity has been brought on line during the quarter,
increasing towards the target of 20 consists.
Related Link: Official
Document |
