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NWE Refugees, page-91

  1. 875 Posts.
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    I don't know why everybody is focusing on the cost increase in Mt Marion.
    It's literally explained in the report.
    They reallocated the mining fleet to pre-stripping ahead of the production expansion to have several mining fronts available to sustain 900ktpa.
    That means they haven't been mining actual ore for a while, so they had to draw from the contact ore stockpiles to keep the concentrator plant going.
    Contact ore is lower grade, recoveries and output is lower so obviously costs are higher.

    It is transitional in nature and with the expansion being completed this month, I don't know why everybody keep talking about it like it's killing the business or something.
 
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