The Cobre operation currently sells magnetite through the Company’s wholly owned subsidiary Southern Minerals Group LLC. Cobre is a reliable high-capacity supplier of magnetite to industries throughout North America, in  markets such as:
 
  • cement
  • ballast
  • fertilizer
  • magnets
  • landscaping
  • coal cleaning
  • paint pigment
  • dense media/medium
  • water jet cutting
 

 

In 2011 the Company acquired the rights to the Cobre magnetite operation in New Mexico, United States and currently holds, through its wholly owned subsidiary Southern Minerals Group LLC, access to a market ready stockpile of magnetite. Initially the Company sold magnetite product to export iron ore markets but due to the decline in the iron ore price has now refocused its efforts on domestic sales to customers in the United States.
 
The magnetite material has previously been a treated by-product of copper mining and milling activities with the material recovered by a magnetic separation process to produce the magnetite product which is now available for sale. The product has been processed through ball mills to grind the rock down to a P80 of 90 microns. The magnetite is non-hazardous and there is a full environmental permit at Cobre that enables the free scoop, screen and logistics operation to be undertaken.
 
The product is ideal for markets such as cement, fertilizer, dense media/medium, paint pigment, water jet cutting, ballast, magnets, toner, coal cleaning and landscaping.  The price of magnetite product sold to these markets is not linked to iron ore prices. Detailed specification of our magnetite product is available on our subsidiary website.
 

The Company has also been working to increase the value of the Cobre asset by reviewing sales opportunities including the opportunity to produce a higher value product for sale to the dense media market and other markets. Improving coinditions in the US provide opportunity to expand our customer base and unlock the value from the existing magnetite stockpile.
 
Cash flow generated from Cobre has been instrumental in the Company being one of the few listed resources companies that does not require regular raising to cover operating overheads.