Grange Resources Ltd. expects lower production this year following the fatality that occurred at its Savage River iron ore mine in Tasmania.

The company said June 5 that output will be about 400,000 tonnes to 500,000 tonnes less than expected due to a change in mine design.

A contractor was killed in March while undertaking scaling work in the mine's North pit.

Grange has continued to pre-strip the pit to provide access to the main zone, but has modified the pit design to include additional wall support and will also install a rock-catch fence.

The company said remediation has taken some time, and additional support is required to ensure the stability of the area.

Access to the main ore zone has been delayed while the remediation is undertaken.

While Grange did not provide 2017 guidance, the ASX-listed producer sold about 2.8 million tonnes of iron ore in 2016.

Meanwhile, progress on the replacement and installation of the second autogenous mill is progressing ahead of plan, according to Grange, with maintenance to be completed during the mill's downtime in July.

The company said the work will prepare the mill for higher production rates for the rest of the year.