PERTH (miningweekly.com) – ASX-listed Strike Resources is preparing for first shipment from its Paulsens East iron ore mine in the Pilbara before the end of August, but has suspended other expeditions.
The company said on Thursday that 60,000t of Direct Shipment (DSO) ore had been stored at the multi-user bulk handling facility at Utah Point, Port Hedland, with a further 6,000t to be transported. at the port before being loaded onto a carrier for a scheduled shipment.
The first delivery was sold to a buyer based in Hong Kong.
Strike told shareholders that while the successful shipment of its first iron ore shipment from Paulsens East would be a significant milestone, the company has decided to suspend additional shipments from Utah Point given current market conditions, in especially taking into account the low reference level. iron ore prices relative to prices earlier in the year, as well as higher input costs which negatively impacted operating margins.
Over the coming week, operations at the mine will process ore in circuit, with operations expected to be halted in an orderly fashion and to facilitate the potential resumption of exports in the short to medium term if market conditions improve.
Production from Paulsens East Stage 1 involves mining and processing surface detrital material to produce lump sum DSO from Paulsens East, with transport by road train to Utah Point for export.
Stage 2 development will involve conventional surface mining of the Paulsens East hematite ridge, ramping up to an annualized production rate of up to 1.8 million tonnes per year, with road train transportation and export via the port of Ashburton near Onslow.