CuFe to recommence mining operations at JWD
Published by Joe Toft,
Editorial Assistant
Global Mining Review,
As part of underpinning this restart CuFe has commenced building a hedge book to cover future sales. To date positions have been taken, basis March quotation period, with 10 000 t swapped at US$120.70 and 20 000 t of collars entered with a floor price of US$110/t and ceiling price of US$129.5/t, basis 62% Fe. Lump premium is additional to this and remains floating at this stage.
In addition to planning the restart of mining, the JWD site team has continued to recover high grade material from a waste stockpile on site, crushing and screening it for trucking to port. A further 8 – 10 000 t of this material is expected to be loaded next week on a vessel shared with the neighbouring C4 project. That parcel is subject to a swap contract for February at US$116.50/t, basis 62% Fe.
The company is also contributing a parcel of 20 000 t of fines product to a joint ship with C4, which will load during February. This material is approximately 58% Fe and is being sourced from stockpiles which are economic to export presently given the lower freight rates and grade discounts that apply.
To assist in funding the working capital associated with the ramp up of activity the company has negotiated a US$2 million prepayment facility with its JWD offtake partner Glencore.
CuFe Executive Director, Mark Hancock, commented
“It’s pleasing to see the iron ore price back at levels that allow mining to recommence at JWD. With the relaxing of Covid related restrictions expected to drive economic activity in China and continued strong demand for our product from SE Asia we are optimistic that 2023 will offer a period of attractive pricing for JWD iron ore. This, combined with an improved cost base arising from falling fuel prices lowering sea freight and road haulage cost and improved stripping ratios favourably impacting mining costs means Cufe is well placed as we move into the next phase of JWD operations.”
Read the article online at: https://www.globalminingreview.com/mining/24012023/cufe-to-recommence-mining-operations-at-jwd/
You might also like
Anglo American rejects BHP proposal
The Board of Anglo American has provided an update regarding the recent unsolicited, non-binding, and highly conditional combination proposal from BHP Group Ltd.