AAP reported that iron ore pellet producer Grange Resources has forecast a lift in full year output by as much as 15% because of better conditions at its Savage River mine in Tasmania.

Grange recently reported production for the 2011 calendar year of 2 million tonnes a rebound in output following a rock slide at the mine in mid-2010.

Mr Russell Clark Chief executive said the recommencement of mining in the North Pit at Savage River had increased ore grades, resulting in greater production and a reduction in costs that were now sustainable. He said December quarter production was at the highest level in the past 15 months.

He said that "We are expecting production to be up to 15% higher in 2012 due to improved mining conditions."

The company described 2011 when customer BlueScope Steel shut one of its two blast furnaces as a challenging but ultimately successful year.

(Sourced from AAP)