Moly Mines said that iron ore shipments has resumed at its Spinifex Ridge project after operations were disrupted by bad weather.

The company said that a ship with 64,472 wet metric tonnes grading about 59% iron has set sail for China. It is one of the first shipments from the Pilbara region in Western Australia, where the Spinifex project is located, since a cyclone forced closure of the ports earlier this week.

Despite disruptions caused by the bad weather, the company said the project’s production rate is now expected to reach 1 million tonnes per annum in early second quarter. The production rate increase was originally planned for July 2011.

For 2011, the company said total iron ore production is budgeted at 0.82 million tonnes at an average free on board cost of AUD 60 to AUD 70 per tonne, before freight costs and government royalties.

Moly Mines also said it has resumed talks to secure the second half of a USD 466 million loan facility from China Export and Import Bank. As part of the loan facility, it received a loan commitment last month of up to USD 250 million from the China Development Bank.

Besides iron ore, the Spinifex Ridge project also contains molybdenum and copper resources.

(Sourced from www.proactiveinvestors.com)