Tue, August16, 2011
Mount Gibson Iron has signed a major agreement for the sale of nearly half of all the hematite iron ore produced at its Extension Hill mine.
Under the deal, Glencore International will buy 48 per cent of ore produced at the mine for its entire operating life.
Production at the site north of Geraldton began this year, and with an offtake agreement now in place, Mount Gibson anticipates the first shipment of ore will leave the mine in coming months.
The company has been cautious in its negotiations with potential customers after several previous clients defaulted on sales agreements when the global financial crisis hit.
Mount Gibson's managing director Luke Tonkin says it is a positive outcome to have sealed the deal with Glencore.
"We've been very patient in ensuring that we get the right terms and conditions," he said.
"Glencore has been patient with us, the negotiations have been cordial and very professional but we're pleased to get this one under the belt and we'll be also pleased to announced when we've finished the others."
In other resource news, the Environmental Protection Authority has recommended a major expansion of the Jack Hills operation, north east of Meekatharra.
Crosslands Resources currently mines around 1.8 million tonnes from the site each year but it is hoping to increase that to 20 million tonnes.
sourced ABC.net
Showing posts with label Mount Gibson Iron Ltd. Show all posts
Showing posts with label Mount Gibson Iron Ltd. Show all posts
Tuesday, August 16, 2011
Monday, July 4, 2011
Australian iron ore production and export to surge by 2012
Monday,4July,2011
Reuters reported that iron ore production in Australia, the world largest exporter of the steelmaking raw material is rising rapidly to keep pace with projected increases in China led demand.
According to government trade data iron ore exports should rise 3% to 414 million tonnes this year before climbing to 459 million tonnes in 2012.
Below is a list of production schedules for the country major suppliers driving future output?
1. Rio Tinto
Rio Tinto is targeting an increase in production to 333 million tonnes a year by the first half of 2015 from around 230 million tonnes currently.
2. BHP Billiton
BHP mines about 155 million tonnes of iron ore a year and is developing new mines and port facilities to lift output to 240 million tonnes in 2015.
3. Forescue Metals Group
Production is scheduled to rise to 155 million tonnes a year by June 2013 from 55 million tonnes currently.
4. Cliffs Natural Resources
The company's Cockatoo Island project resumed production in the third quarter of 2010 following construction of a seawall and is forecast to produce 700,000 tonnes through 2012.
5. Mount Gibson
The company Tallering Peak mine is operating at a production rate of 3 million tonnes per year. A second deposit, Koolan Island is ramping up to a rate of 4 million tonnes a year by December 2011 from 3 million tonnes currently.
6. Murchison Metals
Production of up to 25 million tonnes per year is being targeted from the Jack Hills mine to coincide with the commissioning of a new 560 kilometers rail line to a new port at Oakajee. Development of the port has been delayed by at least three years to 2015.
Murchison is a 50% shareholder in Crosslands Resources Ltd which is the owner of the Jack Hills mine. The remaining 50% of Crosslands is held by a subsidiary of Mitsubishi Corp.
7. Sinosteel
The company Koolanooka/Blue Hills project commenced operations in early 2010 at a production rate of about 1.5 million tonnes a year and is scheduled to run for five years. Sinosteel has suspended development work on its 15 million tonnes per year Weld Range mine pending a definitive time schedule for construction of the Oakajee port and rail project.
8. Atlas Iron
The current production rate of 7 million tonnes per year from Atlas' Wodgina mine is scheduled to rise to 12 million tonnes in 2013 and 22 million tonnes in 2015.
9. Gindalbie Metals
The Karara Project is scheduled to yield 3 million tonnes of hematite ore from mid 2011 and 8 million tonnes annually of magnetite concentrates from late 2011.
10. BC Iron
The firm's Nullagine deposit is forecast to yield 300,000 tonnes of iron ore in the half year to June 30 with full year output estimated at 2.3 million tonnes. Total product shipped for the year ending December 2011 is expected to be approximately 2.3 million tonnes rising to 3.5 million tonnes to 3.7 million tonnes in 2012.
11. Grange Resources
The company Savage River mine project is yielding 2 million tonnes of iron ore annually with potential to increase output to 2.6 million tonnes during its remaining 16 year mine life.
(Sourced from Reuters)
Reuters reported that iron ore production in Australia, the world largest exporter of the steelmaking raw material is rising rapidly to keep pace with projected increases in China led demand.
According to government trade data iron ore exports should rise 3% to 414 million tonnes this year before climbing to 459 million tonnes in 2012.
Below is a list of production schedules for the country major suppliers driving future output?
1. Rio Tinto
Rio Tinto is targeting an increase in production to 333 million tonnes a year by the first half of 2015 from around 230 million tonnes currently.
2. BHP Billiton
BHP mines about 155 million tonnes of iron ore a year and is developing new mines and port facilities to lift output to 240 million tonnes in 2015.
3. Forescue Metals Group
Production is scheduled to rise to 155 million tonnes a year by June 2013 from 55 million tonnes currently.
4. Cliffs Natural Resources
The company's Cockatoo Island project resumed production in the third quarter of 2010 following construction of a seawall and is forecast to produce 700,000 tonnes through 2012.
5. Mount Gibson
The company Tallering Peak mine is operating at a production rate of 3 million tonnes per year. A second deposit, Koolan Island is ramping up to a rate of 4 million tonnes a year by December 2011 from 3 million tonnes currently.
6. Murchison Metals
Production of up to 25 million tonnes per year is being targeted from the Jack Hills mine to coincide with the commissioning of a new 560 kilometers rail line to a new port at Oakajee. Development of the port has been delayed by at least three years to 2015.
Murchison is a 50% shareholder in Crosslands Resources Ltd which is the owner of the Jack Hills mine. The remaining 50% of Crosslands is held by a subsidiary of Mitsubishi Corp.
7. Sinosteel
The company Koolanooka/Blue Hills project commenced operations in early 2010 at a production rate of about 1.5 million tonnes a year and is scheduled to run for five years. Sinosteel has suspended development work on its 15 million tonnes per year Weld Range mine pending a definitive time schedule for construction of the Oakajee port and rail project.
8. Atlas Iron
The current production rate of 7 million tonnes per year from Atlas' Wodgina mine is scheduled to rise to 12 million tonnes in 2013 and 22 million tonnes in 2015.
9. Gindalbie Metals
The Karara Project is scheduled to yield 3 million tonnes of hematite ore from mid 2011 and 8 million tonnes annually of magnetite concentrates from late 2011.
10. BC Iron
The firm's Nullagine deposit is forecast to yield 300,000 tonnes of iron ore in the half year to June 30 with full year output estimated at 2.3 million tonnes. Total product shipped for the year ending December 2011 is expected to be approximately 2.3 million tonnes rising to 3.5 million tonnes to 3.7 million tonnes in 2012.
11. Grange Resources
The company Savage River mine project is yielding 2 million tonnes of iron ore annually with potential to increase output to 2.6 million tonnes during its remaining 16 year mine life.
(Sourced from Reuters)
Monday, February 14, 2011
Rizhao Steel refuses to pay contract breach fines to Mount Gibson
Monday, 14 Feb 2011
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
It is reported that due to the refusal of paying a contract-breach compensation of about CNY 700 million to the Australian Mount Gibson Iron Ltd, Rizhao Steel is confronted with Mount Gibson’s detention for its iron ore cargoes from the Australian ports in a bid to recover damages from Rizhao Steel.
According to the report published on The Australian , iron ore miner Mount Gibson put forward solutions in early February hoping to recover compensation through seizing iron ore cargoes from the ports of Rio Tinto and other miners as it struggles to recover USD 114 million of fines awarded to it from China's Rizhao Steel.
Mr Alan CFO of Mount Gibson said that he doesn’t make sure whether other Australian suppliers were helping us if we seize one of Rizhao ships which may only be worth USD 15 million or USD 20 million.
In July 2007, the two companies signed a 15 year contract, in which Rizhao committed to purchase up to 1.5 million tons of iron ore every year from Mount Gibson. In 2008, affected by financial crisis and the market prices of iron ore dropped below the negotiated long term prices in the international iron ore market, many small steelmakers including Rizhao were unable to fulfill their duty stipulated in their long term contracts and diverted to purchase iron ore in spot market.
(sourced:mysteel.net)
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