Marampa iron ore miner London Mining saysthe volume of concentrate – 543,000 wet metric tonnes (wmt) – produced in Q4 jumped 46% over the Q3 volume of 373,000 wmt for 2012.
London Mining therefore achieved a full year production of 1.63m wmt (1.52M dry metric tonnes), which exceeded its 2012 target of 1.5m dry metric tonnes (dmt).
This the Company says is due to the hiring of a new mining contractor and improvement in plant availability and metallurgical recoveries.
Chief Executive Officer Graeme Hossiesaid: “London Mining has had an excellent finish to its first year of production at Marampa with a 46% increase in quarterly production allowing us to beat the full year production target we set in January 2012.
According to analysts “With the Marampa processing plant kept busy in the fourth quarter of 2012, a stockpile of around 390,000wmt is in place with shipping now scheduled to allow realisation of a significantly higher FOB price than would have been achievable at the end of 2012. The logistics required to deplete the stockpile are already in place and the further upgrades to transhipment capacity are expected to reduce it to an operating level of less than 100,000wmt or one ship load during the first half of 2013.”
Chief Operating officer Jim North says “We would expect to ship more than we produce in the first quarter.”
Q3 sales were also up by 30% to 387,000wmt.
CEO Graeme Hossie further disclosed,”We have also started commissioning of the second plant which positions us well to meet our target of increasing capacity to 5.0m tpa at an operating cost of under $50 per tonne. We have put our Colombian assets on care and maintenance with a view to rationalise the assets over time. This will enable us to better focus resources on Marampa which we expect to produce the greatest return on capital for shareholders in the near term.”