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[ferro-alloys.com]Iron ore sales have resumed from the formerly BHP-owned Western Australian high-grade Koolan Island mine, Mount Gibson Iron said Wednesday.

The resumption of sales now places Mount Gibson as Australia's highest grade exporter of direct-shipping hematite iron ore, based on ore reserves in the Koolan main pit of 21 million mt grading 65.5% Fe, to be mined over the next 5.5 years, the company said.

A cargo of about 72,000 wet mt, averaging 65% Fe, will be loaded on Wednesday aboard the MV S'Hail Al Mafyar and depart for delivery to customers in China, it said.

"The first shipment from Koolan Island follows two years of redevelopment and refurbishment work at the site," it said.

Mount Gibson acquired the project, off the northern Kimberley coast of Western Australia, in early 2017 through its takeover of Aztec Resources. Hematite shipments began in June that year and passed the 20 million mt mark in February 2014, before operations were suspended a few months later due to a seawall failure.

Previously, almost 70 million mt of iron ore was mined by BHP from the operation from 1963 to 1993.

Mount Gibson said earlier in the year that life of mine all-in cash costs are projected at A$48/wmt ($34/wmt) FOB, resulting in an estimated breakeven S&P Global Platts 62% Fe price of $40/dmt CFR.

"The high grade and quality of Koolan Island's direct-shipping hematite iron ore products means that they are well suited to China's increasing focus on steel manufacturing productivity and environmental impacts," Mount Gibson's CEO Peter Kerr said Wednesday.

(S&P Global Platts)

• [Editor:王可]