Red Rock Resources part-owned mine beats production target

1st Sep 2014 12:29

Red Rock Resources on Monday reported that Jupiter Mines's Tshipi Borwa Manganese mine, in which it holds a 1.2% stake, achieved above-target production of 1.1m tons of manganese in its first year of production. For the current year, which began at the start of March, 2m tons are projected, with production to mid-August already above 1m tons. "Recent lower Mn prices were partially compensated for by achieving lower operating costs, which may now be the lowest in the industry at around $2.60 dry metric ton units (DMTU) [...] thus the operations are still profitable even at recent low market prices of $3.30 DMTU."The operations have a 60-year planned life, low cost, an easily accesible open pit and a rail load-out station that can load a train in four to five hours.Red Rock Chairman Andrew Bell said: "Jupiter Mines' Tshipi Borwa mine has performed exceptionally well in a challenging market, exceeding planned production volumes, seizing a substantial share of the Chinese market, and achieving a low cost of production. "There is scope for further progress, including production expansion at Tshipi, which is proving itself to be a world class mining property."Meanwhile, the group also commented on an announcement from Resource Star, its 20.91%-owned subsidiary, which said it was continuing due diligence on Australian cloud computing service and infrastructure provider, Cloud Lands Digital Fortress, and had announced a general meeting to approve the placement of shares to raise as much as A$452,000.NR