Mount Gibson benefits from strong iron ore prices

Mining activities shown in the eastern end of the Koolan Island main pit. Image: Mount Gibson Iron

Mount Gibson has sold 2.3 million tonnes of iron ore in the first half of the 2021 financial year ahead of entering a new phase of operations at the Koolan Island mine in Western Australia.

The company has scheduled lower ore shipments in the first half of 2021 due to overburden stripping at Mount Gibson, along with an acceleration to development activities at the Shine iron ore project in Western Australia.

“As scheduled, ore shipments will be lower during the next six months as we progress the peak overburden stripping phase at Koolan Island and develop Shine,” Mount Gibson chief executive officer Peter Kerr said.

“However, strong iron ore prices continue to reduce the net investment required at Koolan Island compared with our original expectations during this period, and pricing outlooks remain very solid.

“Ore sales and cashflows are set to rise sharply from mid-2021 as the overburden stripping phase is substantially completed at Koolan Island and Shine enters production.”

The Shine project is on track to ship iron ore in the September 2021 quarter.

Mount Gibson has also completed its Mid West low-grade sales program from the Extension Hill mine site, which produced 4.1 million tonnes since June 2019.

The company is now conducting rehabilitation and closure activities at Extension Hill.

Kerr said the company had delivered ‘steady performance’ for the first half of the 2021 financial year.

“Mount Gibson delivered a steady performance in the December quarter and half year, with iron ore sales in line with plan amid challenging weather and mining conditions at Koolan Island late in the year,” he said.

“In the Mid West, our low-grade sales program was successfully completed in December and progress at the Shine iron ore project has accelerated with site works under way in order to meet our target of first ore sales early in the September quarter.”

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