Alumina hits Karara concentrate output: Correction Print article...

Alumina hits Karara concentrate output: Correction

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30 Apr 19, 06:19 - Metals, Ferrous, Steelmaking raw materials , Iron ore
Sydney, 30 April
Magnetite iron ore concentrate production at the 8mn t/yr Karara mine and processing plant in the Mid West region of Western Australia fell during January-March as higher alumina material processing affected output.
The plant produced 1.82mn t of concentrate during January-April, down from 1.9mn t a year earlier and from 1.89mn t for October-December. The fall was caused by processing high alumina material or refractory ore, which reduced the performance of the plant, according to Australian mining firm Gindalbie that owns 47.48pc of Karara. Chinese steel producer Ansteel owns the balance of the Karara mine and plant and is in the process of acquiring Gindalbie's stake. Higher alumina levels are becoming an increasing problem in Asian markets because of the tight supplies of low-alumina cargoes from Brazil for blending.
Karara shipped 1.86mn t of 65.4pc Fe concentrate during January-April, down from 1.93mn t a year earlier and from 1.95mn t for October-December.
The increased alumina also helped push up the cost of production to an average cash cost of A$95.75/dry metric tonne (dmt) ($67.45/dmt) during January-April from A$90.43/dmt for October-December and from A$80.11/dmt for the same period a year earlier. Karara's reported cash costs include mining, processing, maintenance, rail, port and site administration costs but not royalties.
Margins at the plant and mine were maintained in the quarter with the rise in production costs accompanied by an increase in sale prices. The average realised cfr sales prices was A$134.36/dmt up from A$128.49/dmt during October-December and from A$118.08/dmt for the same period a year earlier.