Via AM:
United States-based iron ore miner Cliffs has revealed it will accelerate plans to close its mining operations in Western Australia.
Cliffs, which owns the Koolyanobbing iron ore complex near Southern Cross, expects the closure to take place this year.
The company update was part of Cliffs’ 2017 fourth quarter report, which outlined that its Asia Pacific business made a loss during the three-month period.
“After evaluating current and anticipated future market conditions in connection with the remaining iron ore reserves at Cliffs’ APIO (Asia Pacific Iron Ore), including quality and the current market price for the ore, the company has decided to accelerate the projected time frame for the planned closure of mining operations in Australia, which will more than likely occur in 2018,” the company reported.
“Accordingly, the company will no longer provide guidance related to this business segment.”
Cliffs’ Australian iron ore operations export through the Esperance Port on WA’s south coast.
This thing has been on life support for years now, largely running down reserves not digging up much new volumes. It’s 11mt per annum gone, more or less.
However the 58% grade discount is the real killer. It remains at 45% today and shows no sign of improving. AGO confirmed that today as well:
FMG be warned.
