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Southern Iron closure drops Arrium ore by 20pc

Oct 20, 2015
Ore shipments fell by 20 per cent for Arrium.

Ore shipments fell by 20 per cent for Arrium.

Embattled mining and minerals group Arrium has experienced a 20 per cent drop in ore shipments as a result of shelving its Southern Iron operations.

Releasing its September quarterly production details on Monday, Arrium reported on its latest round of mining restructure activity which will see another 55 positions go from the Whyalla operations.

“Significant reduction in the business’ capital plan has been implemented and an average capital expenditure of ~A$6/t (US$4/t) continues to be targeted for FY16,” the company said.

“Arrium continues to focus on opportunities to reduce costs, improve efficiency levels and optimise cash generation.”

The mining group stated improvements in supply and demand for iron ore had helped stabilise prices.

It reported the average price it received for its iron ore fell $A1 to $A66 a dry metric tonne in the three months to 30 September and its total cash costs fell by nearly $A5 to $A57.40 a tonne.

“Pricing was less volatile than in recent periods due to improvement in the supply/demand balance. This was supported by continued low port stocks in China which fell below 80Mt.”

Arrium announced last Friday that 55 positions would go from the Whyalla operations over the next two years.

The job cuts were part of a “thorough review” of its mining operations in a bid to save $100 million.

Earlier in the year, Arrium shed nearly 600 jobs from its Southern Iron operations.

It publicly stated it was confident the restructure would help the long-term sustainability of the Whyalla steel business.

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