Grange Resources has raised its full year production output by 15 % after the iron ore grades at Savage River mine took an upturn. The iron ore pellet producer said that the Tasmanian mine would help boost their production in 2012.
In 2011 Grange Resources produced 2 million tones which was a considerable leap up from 2010. A rock slide in mid 2010 had affected the production of ore adversely. Now with increased ore grades at the North Pit in the Savage River mine there should be a reduction in operating costs and an increased level of production.
Russell Clark, the chief executive officer of Grange Resources said that they were expecting production to be up to 15 per cent higher in 2012 due to improved mining conditions. He added that 2011 which included customer BlueScope Steel shutting down one of its blast furnaces was a challenging but ultimately successful year. China’s Shagang international will be replacing BlueScope Steel as a customer of the mine after it finished the full contracted amount with Grange Resources.
The company is also considering selling a stake in its Savage River mining operations to help fund its Southdown mine at Albany in Western Australia. It is currently in a joint venture with Sojitz of Japan to develop the $2.57 billion project.