Production of tin-in-concentrate at the Renison mine in Tasmania in the first quarter of 2013 dipped by 15%, as previously advised, to 1,520 tonnes. However the quarterly total was up by 30% compared to the first quarter of 2012 and 50% owners Metals X remain confident that the operation is still on a strong growth path following the appointment of a new mining contractor and continuing investment in exploration and development.
In a statement Metals X said that “following a competitive tender process, Barminco Limited commenced a three year contract for underground mining services replacing Macmahon Holdings Ltd who had been the mining contractor for the previous three years. The changeover was completed as expected with approximately two weeks of production impact on the mine. One-off costs related to the contractor change-out and the reduced production also had an impact on costs.” Cash operating costs per tonne of tin were reported at A$12,715/t, while full costs including selling and capital costs were $18,305/t.
Looking forward, the company noted that “the Renison mine remains in a strong position having invested significantly in exploration and capital mine development over the previous years. Currently the mine has 590,000 tonnes of fully developed ore and 2,100,000 tonnes of capitally developed ore stocks. ….The new mining contractor, Barminco has settled in well and is now fully equipped and manned up. The company expects productivity to return to steady state in the ensuing quarter.”
