On June 23, Sinosteel, which is one of China's largest iron ore traders and a founding member of the Oakajee Port and Rail project to be established near the port of Geraldton in Western Australia, announced that it will stop developing a $2 billion iron ore mine which would have required one third of the port's capacity.
Sinosteel stated that it has decided to suspend its Weld Range mine because of too many delays. The company is also said to be concerned about the costs. In a company statement, Sinosteel said it is not cancelling the mine project all together, though adding that it had to make the right choice for the future of its business.
This decision of the Chinese company will result in loss of 43 jobs and also a possible impact on future Chinese investment in the industry.
"There has been increasing concern in China that Australia is a difficult place to do business and this may unfortunately fuel these concerns," the president of the Australia China Business Council, Duncan Calder, said.
The official estimated cost of the project is now $5.2 billion.