March will be SUPER GOOD !Moly Mines Ltd says it has managed to beat expectations for its Spinifex Ridge iron ore mine ramp-up, despite lost time caused by wet weather.
Moly Mines in 2009 decided to initially mine iron ore at the Spinifex Ridge project in Western Australia, where it mainly intends to mine molybdenum and copper, after a sharp fall in the molybdenum price, which has since improved.
Moly Mines also on Monday said it had resumed talks with its largest shareholder, China's Hanlong Mining Investment Pty Ltd, and a banking syndicate for a $US466 million project finance loan facility that will be used for the molybdenum project at Spinifex Ridge.
The company said a China-bound vessel loaded with 64,472 wet metric tonnes of iron ore from Spinifex Ridge had been shipped on Friday night.
"The shipment has been achieved despite two cyclones and periods of torrential rain that have disrupted mining and shipping operations throughout the Pilbara and at Port Hedland in the last eight weeks," Moly Mines said in a statement.
"Mining rates at Spinifex Ridge have exceeded ramp-up expectations in February, despite some lost time caused by inclement weather.
"The mine production rate is now expected to reach one million tonnes per annum in the second quarter, well ahead of the planned date of July 2011.
"Total iron ore production for 2011 is budgeted at 820,000 tonnes at an average free on board cost of $A60-70 per tonne, before freight costs and state government royalties."