Anglesey Mining’s (LON:AYM) 26 per cent owned associate Labrador Iron Mines (LIM) is on course to hit its target to produce 2 mln tonnes of iron ore in 2012.
During the year ended March 2012, LIM sold three shipments of iron ore totalling 386,000 tonnes and a value of US$32 million.
LIM’s president and chief operating officer Rod Cooper said: "Given the strong start and progress made to date, we fully expect to achieve our two million tonne production target in 2012."
LIM made a loss of $14.7 million during the year, compared to $4 million in the previous year due to an increase in transportation related start-up costs of approximately $9.6 million.
The miner has already made three shipments of iron ore in the current financial year, with the second and third shipments completed in June.
Operations at the James mine are expected to ramp up to a mining rate of 28,000 tonnes per day from 17,000 tonnes per day.
Initial production began from James in June last year and the firm recorded the sale of 400,000 tonnes of iron ore in the first start-up season.
Starting with the James mine and leading to the development of the flagship Houston project, it wants to ramp up production and sales towards 5 million tonnes per year by 2015.
The expansion program at its Silver Yards processing plant, which includes the installation of a second washing and screening plant and a new magnetic separator, is due for completion this summer.
LIM ended the year with $71.1 million cash and equivalents and no debt.