Australian iron ore miner BC Iron Limited has announced that its Nullagine iron ore joint venture (JV) returned to an annualized run rate of 6 million mt during November after operational adjustments were implemented. The company reaffirmed Nullagine project's sales guidance for the financial year 2014-15 at 5.2-5.6 million wet mt.
In light of the current challenging environment for iron ore, BC Iron has been focused on reducing costs both at the Nullagine JV and the company's head office. Key measures implemented include proactive assessment of the mine plan, the termination of a higher-cost road haulage contract, termination of a number of consultancy contracts and redundancies at site and head office.
As a result of these cost savings and lower prevailing iron ore prices, BC Iron has revised its all-in cash cost guidance to $54-61 per wet mt for the remainder of the current financial year.