THE BOURSE WHISPERER: Beadell Resources (ASX: BDR) has produced the first iron ore concentrate from the company’s newly-commissioned Magnetic Separation plant in Brazil.
This concentrate is being extracted from the tailings at Beadell’s Tucano gold plant as a by-product.
Beadell anticipates the concentrate to provide a substantial financial credit to its gold operation.
The plant was constructed on time and within the company’s budget of US$11.7 million with commissioning and generation of first product achieved on 27 May.
The company said the plant will now be optimised to maximise the yield of plus-65 per cent iron concentrate.
Iron ore concentrate plant. Source: Company announcement
The plant consists of three drum magnets as the primary part of the circuit and an additional three cleaning drum magnets followed by a ceramic filter to reduce the moisture of the magnetite product.
The commissioning team is in the process of training and handing over the plant to the operational team.
“This project was completed ahead of schedule and within budget,” Beadell Resources managing director Peter Bowler said in the company’s announcement to the Australian Securities Exchange.
“I am very pleased with our experienced in-house project team which has worked hard to achieve this outcome.
“We are committed to continuing investigation of further cost-saving initiatives at our Tucano gold mine to ensure our cost of production is within the bottom quartile globally.”
The iron ore concentrate Beadell will produce is the subject of an off-take agreement with the Anglo Ferrous group, which operates a large iron ore mine five kilometres from the Tucano mine site.
Payment for the product will be received once Anglo’s ship loading facility in the nearby port of Santana is reinstated in the next few months.
In the meantime, as operating costs are negligible, the high-grade concentrate will be stockpiled in readiness for shipment.
At current iron ore prices, Beadell said the concentrate produced is expected to generate net income of approx. US$30 per tonne and has the potential to reduce the Tucano gold operation’s monthly cash cost by approx. US$1 million.