Arrium iron ore shipments to rise by 53% in 2014
Australia’s Arrium Mining & Materials is expected to sell 12.4-12.5 million tonnes of iron ore in the 2014 financial year, up by 53% on an annual basis.
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The miner aims to increase its production run rate to 13 million tpy in the first quarter of the 2015 year, Arrium announced on Wednesday June 25.
The company believed that though there were “solid” supply increases in 2013 and in the first half of 2014, strong demand from China will continue, and higher-cost Chinese domestic ores will begin to leave the market.
“Our resource portfolio provides flexibility to quickly alter our market offer to maximise earnings and cash,” Arrium said.
It also saw advantages in its cost base and in its whole-ownership of Whyalla Port and rail infrastructure.
Arriums’s mines are located in the Middleback Ranges of South Australia. Its iron ore products include 67% Fe pellet feed, 62% Fe iron ore via beneficiation, and hematite direct shipping ore (DSO).
The company sold a record of 9.3 million tonnes of iron ore during the first three quarters of the 2014 year, up by 73% year-on-year.