23rd Apr 2015 07:53
LONDON (Alliance News) - Anglo Pacific Group PLC Thursday said the Kestrel mine is expected to reach full production within the next 9 to 15 months after production continued to rise in the first quarter of 2015.
The Kestrel mine in Australia is operated by FTSE 100 mining giant Rio Tinto PLC, which released its first quarter production results on Tuesday. Anglo Pacific, a global natural resources royalty company, owns 50% of the mining and mineral rights which entitle it to coal royalty receipts from the mine.
Anglo Pacific said the results released by Rio Tinto for the mine demonstrated production of over 1.0 million tonnes of hard coking coal and around 118,000 tonnes of thermal coal in the first quarter, meaning total production was 1.5 times higher quarter on quarter and up 30% year on year.
Both companies said production at the mine continues to ramp up, with full production being achieved in nine to 15 months.
"Rio Tinto's first quarter Kestrel production update indicates that production tonnes on Anglo Pacific's royalty lands continue to be in line with guidance for 2015," said Anglo Pacific. "The company estimates that Rio Tinto will mine between 60% and 65% of total production within Anglo Pacific's royalty lands during 2016."
Anglo Pacific shares fell 0.8% to 85.53 pence per share on Thursday morning, whilst Rio Tinto shares were up 0.3% to 2,870.50 pence.
By Joshua Warner; [email protected]; @JoshAlliance
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