Venture Minerals has begun construction of its wet screening plant at the Riley iron ore mine in Tasmania following completion of the initial mining and dry screening operations.
During this first stage of production, Venture produced 2000 tonnes of high specification iron ore product, supported by strong iron ore prices.
The Venture board has now given the company the green light to proceed with the wet screening plant construction, with site works having already commenced.
The board considered the financial performance of dry screening operations, which were profitable based on current iron ore prices.
According to venture, the iron ore price outlook “remains positive” as the Chinese Government continues its spending on infrastructure, and supply from Brazil remains disrupted due to the COVID-19 pandemic.
“Venture’s board has committed to stage one of the wet screening plant construction as part of its continued ramp up towards full scale production,” Venture managing director Andrew Radonjic said.
“The iron ore price remains strong and the company remains focussed on determining the best mining and screening method at the Riley mine to reduce costs and environmental impact so that we can generate jobs, contracting opportunities and returns to our shareholders.”
Venture is working through several financing proposals for completing the wet screening plant, which once complete, will enable nameplate production at Riley and transition the company from explorer to producer.