OneSteel ; sold 4.4 million tonnes of iron ore last year to its mostly Chinese customers

ONESTEEL is reaping the benefits of mining its own iron ore, with its shares gaining yesterday after it reported better than expected sales from its South Australian mines and flagged production increases.

The boost in production rates, which comes after recent 80 per cent gains in contract prices for Australian iron ore to Asia, sent OneSteel shares up 7.3 per cent, regaining some ground the stock had lost in recent weeks.

OneSteel said it sold 4.4 million tonnes of iron ore last year to its mostly Chinese customers, beating a target of 4 million tonnes.

It also announced plans to ramp up production through its Project Magnet, increasing sales to its Chinese customers to 5 million tonnes this financial year and 6 million tonnes the following. read more

source : http://www.theaustralian.news.com.au