NEW YORK Canadian iron ore producer Labrador Iron Mines Holdings Ltd. has taken measures to reduce capital and operating costs by raising production volumes, chairman and chief executive officer John Kearney said Aug. 15.
The companys operating season started in April at the James Mine near Schefferville, Quebec, and its nearby Silver Yards processing facility.
Labrador Iron Mines reported a net loss of Canadian $28.5 million ($27.5 million) for its fiscal first quarter ended June 30, in part due to a depletion and depreciation charge of C$5.6 million ($5.4 million) and rail take-or-pay transportation penalties of C$6.2 million ($6.0 million).
It sold two shipments of iron ore totaling 328,000 dry tonnes and reported revenue of C$17.9 million ($17.3 million) f.o.b. Port of Sept-Iles.
The company is targeting total output of 1.7 million tonnes of iron ore products in 2013 for transport in a total of 10 shipments.
With the increase in production and railing volumes, the minimization in take-or-pay transportation penalties and implementation of cost-saving initiatives, cash operating costs during the remaining three quarters of the fiscal year are expected to be substantially lower than in the first quarter, LIM said.
A version of this article was first published in AMM sister publication Steel First.