Venture hands out contract on back of surging iron ore price

Venture Minerals has named previous contractor Shaw Contracting the preferred tenderer for the Riley iron ore mine restart project in Tasmania.

The Riley mine has been on care and maintenance since August 2014, shortly after Venture suspended its operations.

Australian Mining understands that the favourable iron ore prices drove the Riley mine into a restart.

The iron ore price is almost currently 70 per cent higher in Australian Dollar terms than upon the closing of Riley, following the recent tragedies at Vale’s mines in Brazil that cut the global iron ore supply, according to the company.

Venture is confident the current price levels will be sustained for at least the near term.

“Venture is glad to welcome back the experience and knowledge of Shaw Contracting to the Riley iron ore project,” Venture managing director Andrew Radonjic said.

“The advantages of getting Shaw to pick up from where they left off will be a huge advantage to the recommencement timeline of the mine.”

Venture plans to restart production at Riley in the fourth quarter of this year. The company has reportedly achieved considerable progress on the mine study update as it nears an “imminent decision” to recommence mining.

Venture has undertaken pre-production works to grab a “quick to market” opportunity for the company. It also reached an off-take agreement with one of the world’s largest iron ore traders, Prosperity Steel United Singapore in May.

The company continues to collate tender packages to form a robust view of potential project economics of the mine.

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