GWR Group has enjoyed haulage improvements in recent weeks, with the company expecting the June quarter to be a better reflection of its performance.
The miner completed its third shipment of iron ore from the C4 operation, part of the Wiluna West direct shipping ore (DSO) iron ore development project in Western Australia, in April.
Its third shipment contained 52,265 wet metric tonnes of high-grade iron ore lump as part of the company’s offtake agreement with Pacific Minerals.
A fourth shipment is scheduled to depart around May 15 following the increase in haulage availability.
GWR stated it was working with multiple haulage contractors to move its iron ore.
“The board is pleased to update shareholders, with our third shipment bringing the total amount of premium iron ore shipped to our offtake partners to date to 156,068 tonnes,” GWR chairman Gary Lyons said.
“Despite a delay in the April shipment due to the impacts of cyclone Seroja on port activity, GWR is confident the financial metrics for the June 2021 quarter will begin to reflect an improving financial operation as costs begin to move in line with pre-production forecasts.
“Haulage remains GWR’s biggest challenge in the current environment, however we have moved to expand our network of contractors and expect to see continued improvement in haulage metrics ahead of stage two negotiations, which have progressed to the stage where contractors have now been selected and contracts are being finalised for the haulage and mining elements.”
GWR expects to achieve its haulage target of 2700 tonnes of ore per day within the next month.
The company is also hoping to increase its crushing capacity at the C4 operation in line with the haulage improvements.
GWR has received mining approvals for large scale mining operations (up to seven million tonnes a year) across Wiluna West’s 10-year mine life.