Posted on 13 Dec 2022
Australian miner CuFe has completed its first sale of iron ore fines from the JWD iron ore project in Western Australia, which is also the first JWD material delivered to China, Kallanish notes
A a parcel of about 14,000 wet metric tonnes (wmt) was sold as part of a blended cargo with the neighbouring C4 project.
With discounts for lower grade fines and sea freight rates having reduced substantially from the levels seen during the year, the firm believes this fines sale is now cash positive.
The company also intends on selling two parcels of lump during December totalling about 35,000wmt, also as part of C4 blended cargos.
To lock in margin on these three parcels, one has been sold fixed price at $106/dry metric tonne (dmt) and 25,000 tonnes of swaps have been entered at an average price of 102.50/dmt basis 62% Fe.
According to the firm, the focus at JWD has been on the sale of high grade lump material, with fines expensed for accounting purposes but maintained in a stockpile for sale as market conditions allow.
It notes the crush and screen plant was being utilised in trials to explore the potential to recover high grade product from a discrete portion of the waste dump on site.
This trial has completed successfully and the process is continuing, with about 15,000wmt per month expected to be recovered at lower cost than sourcing new material from the pit.
The company says it remains in close discussion with its key contractors regarding recommencement of full operations in January if iron ore pricing continues to improve, with key equipment remaining on site and blasted stock available in the pit, facilitating a rapid ramp-up.
Source:Kallanish
