Australia-based iron ore producer Fenix Resources Limited has announced that its board of directors has given approval to restart operations at its Shine iron ore mine, following comprehensive inspections.
In the first stage of the project, the company will invest A$7.4 million to upgrade existing infrastructure and the access road. Also, the company will use its own Newhaul logistics and port services to save costs.
Fenix Resources expects to begin iron ore production at the mine in the December quarter this year. In the first stage, the iron ore grade is forecast to be 60 percent Fe.
“Shine will be our second wholly-owned producing asset in the Mid-West and is planned to nearly double our annual production levels in the near-term, which will result in increased revenues, stronger cashflows, and profitability growth,” John Welborn, executive chairman of the company, commented.