Iron ore: Price uptick prompts Shree to restart Nelson Bay River project
Link copied to
Shree Minerals’ (ASX:SHH) Nelson Bay River project is back on the agenda thanks to the rising iron ore price.
The price has climbed back up above $US90 ($126) a tonne following a second tailings dam collapse in Brazil that forced iron ore production cuts and impacted supply.
A tailings dam is used by miners to store the waste ore leftover after all the economic ore has been recovered.
China’s aggressive environmental crackdown and the lower Aussie dollar also means better iron ore prices for Australian miners.
Shree’s Nelson Bay River mine was placed on care and maintenance in June 2014 following a sharp fall in the iron ore price.
But the company said today it has now started re-permitting activities for the development of a direct shipping ore (DSO) operation.
DSO refers to minerals that require only simple crushing before they are exported, which keeps costs low.
Production started from the south DSO pit in November 2013.
The operation was developed as an all contract mining, processing and haulage operation with local contractors in the region. ‘
Iron ore shipments totalled 181,000 tonnes historically.
Shree said the Nelson Bay River product had been very well received and was in demand by customers due to its low impurities.
Grange River Resources’ (ASX:GRR) share price dipped 7.6 per cent to 30.5c after it told investors completion of its North Pit would be delayed. The delay is due to high rainfall and wall instability. This will impact the production rates at the Savage River mine in the first half, with full production expected in the second half.
Mindax (ASX:MDX) will bank $1.1m from a fully underwritten rights issue. The junior iron ore and gold explorer is offering existing shareholders one new share for every four held at a price of 0.5c. The cash will be used to advance the Mt Forrest iron ore project and to re-assess the Meekatharra gold project.