supplychainreview.com.au reported that iron ore miner and steelmaker Arrium plans to be the 4th largest producer of iron ore in Australia.
CEO Mining Mr Greg Waters today told a UBS Iron Ore Seminar Arrium plans to double its South Australian iron ore export business from 6 million tonnes per annum to 12 million tonnes per annum by mid 2013.
The company says it will increase iron ore sales in part by "blending" lower grade ores from the established Middleback Ranges (MBR) mine with those from the Southern Iron (SI) project, acquired in October 2011.
Mr Waters said "Blending of MBR ores with those from the SI Project's Peculiar Knob mine has a number of benefits. The increased volumes and lower loading costs of lower grade material more than offset lost premium for 62% Peculiar Knob ores."
Currently coming into production, Southern Iron expects first sales in October via rail to Darwin and is on track to deliver first shipments through Whyalla Port in the December 2012 quarter.
Expected total sales of Southern Iron and MBR iron ores together are expected to be 8 million tonnes per annum to 9 million tonnes per annum in FY13.
