dj mgx 1h net profit doubles to a$140 million

SYDNEY (Dow Jones)--First-half profits at Mount Gibson Iron Ltd. (MGX.AU) more than doubled in the six months to the end of December from a year earlier, hitting A$140 million, as iron ore sales rose to a record.

The miner, which is focused on projects in the Kimberley and mid-west regions of Western Australia state, said ore sales in its second quarter ending December 31 rose 18% on the previous quarter to 1.76 million metric tons.

The miner suffered a bitter boardroom battle Nov. 17, when Chairman Neil Hamilton resigned ahead of the company's annual general meeting, arguing that the behaviour of the group's major shareholders threatened the independence of the board.

Mount Gibson's largest shareholders are commodities trader APAC Resources Ltd. (1104.HK), with a 25.9% stake, and a division of Chinese steelmaker Shougang Concord Century Holdings Ltd. (0103.HK), with 14.2% of the company.

In its report Wednesday, Mount Gibson said it had agreed a revised pricing mechanism with the two companies on Nov. 3 for sales from its Tallering Peak and Koolan Island mines.

"The revised pricing mechanism now reflects a market-based clearing index," Mount Gibson said, adding that it had been unable to negotiate a pricing mechanism for selling its Extension Hill ore to the two companies. "Consequently, Mount Gibson will openly market all iron ore sales from Extension Hill to potential customers other than Shougang and APAC," the miner said.