Elmore Ltd. provided an update on the development of the Peko Project. Peko Magnetite Commercial Production Commenced: Following the previously announced completion of commissioning of the Peko Stage 1 Magnetite Processing Plant and commencement of commissioning of the logistics system from the mine to the Port of Darwin, NT Power and Water has now connected the scheme water required to commence commercial production. Production has now begun to ramp up to meet the rail capacity constraint of 350,000 tonnes per annum.

The ramp up will mainly entail safely transitioning from single shift, daylight only processing, to adding a night shift to allow for 24 hour per day production. Elmore will take a conservative approach to this transition from construction and commissioning to full time production to ensure that safe and efficient operations are the priority over speed. All infrastructure is in place and the process has been tested through the delivery of 3 trains whilst waiting for the water to be connected to allow for full production.

The Northern Territory Mines Department, Port of Darwin, OneRail and Linx Stevedoring have now been notified of the commencement of commercial processing and will commence logistics services. At the time of writing of this announcement, the China Steel Index 65% magnetite concentrate index is around USD 200 per tonne.