Mount Gibson Iron Limited (ASX Code: MGX) is an independent Australian producer of high quality direct shipping grade iron ore products.
Mount Gibson has established iron ore mining and export operations in Western Australia. The Company is forecasting ore sales of 4.4 to 4.8 million tonnes in financial year 2015.
The Tallering Peak hematite operation commenced exports of high quality lump and fine hematite ores in February 2004. The mine achieved its target production rate of 3-million tonnes per annum in the first quarter of the 2006 financial year.
Operations at Tallering Peak were concluded in mid 2014 after ten years of continuous production, generating life of mine sales totalling over 25 million tonnes. Site facilities have been decommissioned and removed in accordance with the mine closure and rehabilitation plan. Final rehabilitation works will be completed during the 2015 financial year.
The Koolan Island hematite mining operation is located approximately 140 kilometres north of Derby in Yampi Sound, off the northern Kimberley coast of Western Australia. .
Mount Gibson acquired the project through its successful takeover of Aztec Resources in early 2007. Hematite shipments commenced in June 2007, and passed the 20 million tonne milestone in February 2014.
Operations were suspended in November 2014 following a seawall failure which resulted in the flooding of Main Pit. The mine is on effective care and maintenance pending detailed evaluation of options to rebuild the Main Pit seawall and resume production.
Extension Hill, Mt Gibson
Located in the Mt Gibson Ranges, 260km southeast of Geraldton, the Extension Hill hematite project is Mount Gibson’s third operating mine. Production began in December 2011 with the export of the first ore shipment from Geraldton.
Extension Hill is scheduled to produce an average of 3-million tonnes of ore annually over the next four years.
Mount Gibson is actively evaluating a range of growth options to complement and build on its existing business, by capitalising on its proven operating track record, established export facilities, strong balance sheet, and experienced management.
These options include organic exploration and development opportunities around its existing operations, notably in the Mid West, where its strategic export footprint at Geraldton Port gives it a competitive advantage.
The Company is also evaluating potential acquisition opportunities that will complement and grow its business as a supplier to the Asian steel industry, targeting both iron ore and coking coal.