The Renison mine in Tasmania reported a significant improvement in operating performance in the quarter ending 30 June, with tin-in-concentrate production rising 19% from the previous quarter to 1,395 tonnes. Ore processed at the Renison mill increased by 14% with an average head grade of 1.44% tin. Meanwhile cash operating costs fell by 12% to A$16,731/tonne. Renison is currently the only operating tin mine in Australia.
In a statement the company related the improvement to recent refurbishment and development work: “For the first time in over a decade the Company now has access to all extents of the Renison ore body. This latest milestone results from the completion of refurbishment, and continued development of the Renison North decline. The recommencement of ore development and stoping from this area has afforded significantly more operational flexibility with immediate commensurate increases in productivity. The northern lodes of the Rension ore system have historically shown to be higher grade and have more favourable metallurgical characteristics. This feature with the additional benefit of ore blending has seen an improvement in both mill throughput and a reduction in tailings residues. Further, the reliance on topping up production with marginal and lower grade ores to mitigate fixed costs will diminish and should translate to continued improvements in productivity in the ensuing year.”
Metals X, which operates the mine as a 50:50 joint venture with Yunnan Tin Group and other Chinese investors, continues to re-invest in the mine, with capex exceeding operating cash flow (EBITDA) in the last two quarters. The capital re-investment for the project during the latest quarter was A$7.0 million, of which $4.75M was for mine development and resource drilling, $1.4M for plant and equipment and $0.9M for the current tailings dam lift, which is now 65% completed. As previously reported, the exploration programme carried out over the last year has resulted in a significant increase in reserves and resources at the mine.
