THE WEST AUSTRALIAN
Thursday, 24 January 2013 14:15
BC Iron says its $190 million purchase of an extra 25 per cent stake in its Nullagine iron ore joint venture will add an extra 700,000 tonnes to its 2013 full-year production total to 3.2 million tonnes.
Last month, BC moved to lift its stake in the Nullagine joint venture to 75 per cent by buying an extra 25 per cent stake from partner Fortescue Metals Group.
The deal will see infrastructure capacity of the joint venture boosted to 6mtpa with BC's attributable annual iron ore exports increasing by 80 per cent from 2.5mtpa to 4.5mtpa.
In its quarterly report, BC said the purchase would make it the state's sixth biggest hematite producer Rio Tinto, BHP Billiton, FMG, Atlas Iron and Mt Gibson.
Collectively, the Nullagine joint venture is expected to produce about 5mt in full-year 2013.
BC said it had mined 1.09mt in the December quarter and exported 1.05 wet metric tonnes, down one per cent and 15 per cent respectively on the September quarter.
The average sales price netted for its ore over the December quarter was $US105 per dry metric tonne cost and freight.
Cash operating costs for the quarter were about $51 a tonne.
The company held $58.3 million in cash at the end of the quarter.
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