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【Ferro-alloys.com】Junior GWR Group has resumed mining at its high-grade C4 iron-ore mine, in Western Australia.

Mining operations at C4 were suspended in September last year owing to the volatility in iron-ore prices. Now, following recent price increases the company is able to confirm that mining has recommenced.

GWR on Wednesday said that while mining operations were suspended, crushing from the run-of-mine pad and hauling to the port continued between October and December, enabling GWR to capitalise on a significant inventory of mined iron-ore stockpiles that existed up until mining suspension. The company also successfully negotiated fixed price sales contracts of high-grade lump product in October for 57 859 t and December for 57 150 t for a total of 115 009 t.

In addition, GWR has successfully negotiated fixed price sales contracts for a total of 145 000 t of product for January, February and March 2022.

“The GWR team has taken a proactive approach in order to extract value from its flagship C4 iron-ore mine and has continued to export iron-ore from existing stockpiles whilst mining was suspended,” said chairperson Gary Lyons.

“We have worked through many challenges over the past few months and I am proud of what we have achieved in difficult circumstances. The company has recommenced mining operations in January and will keep shareholders informed of progress.”

A comprehensive review of costs has been undertaken and has identified operational savings. In addition, shipping on a free-on-board basis will mean that GWR is not liable for shipping costs.

Meanwhile, GWR has also made the decision to proceed with the Stage 2 pit cutback that will expose about two-million tonnes of high-grade product. Although some additional blasting will be required, the cutback had been largely already blasted prior to scaling back operations in late September.

GWR told shareholders that its alliance contract partner, Pilbara Resources Group, had entered into voluntary administration in December last year. GWR has been working with the administrators, although to date their situation has had little impact on the C4 project, GWR does not anticipate that the administration process will result in any impact on the C4 project or GWR. 

• [Editor:zhaozihao]