Grange Resources (ASX:GRR) Approves North Pit Underground, Extending Mine Life to 2035

Aditi Sarkar

28 October 2026 03:36 PM AEDT

Grange Resources (ASX:GRR) Approves North Pit Underground, Extending Mine Life to 2035

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Highlights

The Board made a Final Investment Decision on the North Pit Underground Project, extending production to 2035.
Pellet sales rose to 733kt, up 26.3% on the June quarter.
Unit cash operating cost fell to A$144.80/t from A$157.69/t.
Cash and liquid investments increased to A$300.41 million.

Grange Resources Limited (ASX:GRR) has released its quarterly report for the period ended 30 September 2026. The company, Australia's most experienced magnetite producer, reported a Final Investment Decision on its North Pit Underground Project alongside higher production and sales at Savage River.

North Pit Underground Investment Decision

The Board announced a Final Investment Decision on 14 October 2026 to develop the North Pit Underground Project using the Sub-Level Cave method. This approach requires significantly lower initial capital than the previously studied Block Cave, while keeping a future Block Cave option open.

Underground development is set to restart in Q1 2027, with first ore in 2028 and a ramp-up to about 4Mtpa by 2030. The project extends production and pellet supply to 2035. CEO Weidong Wang said the decision will extend the company's life-of-mine well into the next decade.

Savage River Operations

Concentrate production rose to 632kt from 587kt in the June quarter, mainly due to higher weight recovery, which improved to 41.3% from 34.9%. Pellet production was 604kt, supported by four-furnace-line operation.

Pellet sales rose 26.3% to 733kt, and total sales including chips reached 810,894 dmt. The average realised price increased to US$116.13/t, or A$164.41/t. Unit cash operating cost fell to A$144.80/t, helped by higher concentrate output and moderate energy prices. There were no lost-time injuries during the quarter.

Financial Position and Southdown

Cash and liquid investments rose to A$300.41 million from A$267.90 million. Growth capital expenditure of about A$15.9 million was spent on equipment rebuilds, furnace upgrades and underground mine planning.

At the Southdown Magnetite Project near Albany in Western Australia, the search for suitable equity investors continues, while tenements, approvals and project assets are maintained.

Key Takeaways

The North Pit Underground decision extends Savage River production to 2035.
Higher recovery lifted concentrate output and pellet sales.
Lower unit costs and higher prices strengthened the cash balance.
Southdown remains dependent on finding equity partners.

FAQs

Q: What investment decision did Grange make?

A: A Final Investment Decision on the North Pit Underground Project.

Q: How long will the project extend production?

A: It extends production and pellet supply to 2035.

Q: What were pellet sales for the quarter?

A: 733kt, up 26.3% on the June quarter.

Q: What was the unit cash operating cost?

A: A$144.80/t, down from A$157.69/t.

Q: How much cash does Grange hold?

A: Cash and liquid investments of A$300.41 million.

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