Ore production on the increase at Koolan Island

Owners Mount Gibson iron reported quarterly ore sales trebled to 0.71 million wet metric tonnes for the June quarter in comparison to the previous quarter, taking group full year ore sales to 1.65 mwmt, including 1.35 mwmt from Koolan Island.

Mount Gibson’s flagship operation, Koolan Island is located in the Buccaneer Archipelago north of Derby in Western Australia. The former BHP mine boasts Australia’s highest grade hematite ore reserves which average over 65 per cent iron Fe.

The company was targeting sales of 1.5 mwmt from Koolan Island for the 2021/22 financial year and the two-shipment shortfall is expected to be recouped in the coming half-year.

Mount Gibson chief executive officer Peter Kerr said he was pleased to confirm the continuing operational improvement at Koolan Island, which is on track to deliver substantially improved sales, cost performance and cashflow over the coming four to five years of mine life.

“As previously reported, Mount Gibson has largely completed the elevated phase of waste stripping within the Koolan Island Main Pit and has re-established mining access to the high grade orebody,” he said.

Mount Gibson continues to expect Koolan Island to deliver substantially higher ore production, sales and operating cashflows in the coming quarters and 2022/23 financial year.

Guidance for the coming financial year will be provided with the company’s upcoming financial releases, including its 2021/22 annual financial results to be published in August.