BC Iron is looking to renegotiate the terms of several of its workforce contracts in order to save money amid the weak price of iron ore.
BC made the announcement as part of its December quarter results.
At Iron Valley, the agreement with Mineral Resources Limited is being varied to ensure the company can implement initiatives aimed at securing the project’s long-term viability.
Meanwhile, the Nullagine mine is also going out to tender in the hope of securing cost savings.
“The next round of material savings will come in our retendering of existing contracts,” CEO Morgan Bell said.
“We’re expecting a reduction in the overall cost of mining and potentially haulage.”
Nullagine mine, a joint venture with FMG, cut jobs in December in order to deal with the falling price of iron ore.
The price of the commodity hit fresh five-year lows last week of $USS63 a tonne.
BC Iron managed to save $2-3 per wet metric tonne during the quarter, with the company revising its full-year cash cost guidance down to $47-51/wmt.
Nullagine mine ramped up production to its 6 million tonnes per annum run-rate in the December quarter following an operational slow-down in the September quarter.
The mine shipped 1.38wmt of Bonnie Fines for an average price of $60 per tonne.
The new Iron Valley mine shipped a total of 0.79M dmt in the quarter.
BC Iron’s cash balance was $110.1 million as at 31 December 2014.
Ball said the miner would continue to focus on operational performance, productivity and costs in order to make it through the iron ore slump.
“In a really tough in environment we’re all doing a really good job and keeping on punching,” Ball said.
Last year, company announced three non-executive directors resigned with the remaining directors taking a 10 per cent pay cut.