Australian iron ore development company BC Iron Limited has announced that, due to the ongoing and material fall in the iron ore price, it has decided to temporarily suspend production of direct shipping ore at the Nullagine joint venture with Australian miner Fortescue.
The company stated that, despite achieving material cost reductions at the Nullagine iron ore mine, including cooperatively renegotiating the rail and port tariff with Fortescue, the continued decline of the iron ore price, in particular the sharp drop in the last two weeks, affected this decision.
The suspension of direct shipping ore operations at the Nullagine mine will occur progressively over December 2015 and January 2016, with direct shipping ore exports expected to be completed during January. The company also stated that, if there is an appropriate change in external market conditions in the future, then direct shipping ore operations will be able to be efficiently recommenced.