Mineral Resources to shut iron ore mines at Yilgarn
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The news: Mining giant Mineral Resources says it will shut down its iron ore mines at the Yilgarn hub in Western Australia because they are no longer financially viable.
The numbers: The decision will put at risk at least 1,000 jobs at Yilgarn, although the company said it will work with employees on redeployment opportunities across its other operations.
There will also be further impact on contractors and suppliers. Mineral Resources said it expects to ship about 4 million tonnes of iron ore from the Yilgarn over the next six months, with shipments to end by 31 December.
The context: The company said in a statement late on Wednesday that its decision was prompted by factors including the limited remaining mine life across the five operating mines spread over 220 kilometres, and the significant capital cost and lead time required to develop new resources to ensure continuity of supply.
While it has operated the Carina mine in the region since 2011, it acquired Koolyanobbing from Cleveland-Cliffs in 2018. Mineral Resources said it is considering future options for the assets at Yilgarn and will disclose any financial impacts in its full-year results.
The source: ASX announcement
