Plunging iron ore prices have claimed the scalp of another mining asset in Australia just two weeks after Arrium Limited – the country’s fourth-biggest iron ore exporter – announced that it will close its iron ore operations in SA.
Kimberley Metals Group (KMG) is the latest Australian miner that has succumbed to the market pressure and the global supply glut brought forth by major players in the sector, which forced the company to place its Ridges iron ore mine in WA on care and maintenance.
Located 165 kilometres south of Wyndham in WA’s Kimberly, the mine has shipped 6.2 million tonnes of high grade ore to China since commencing operations in 2011.
According to the article on ABC, KMG has already completed the mining of the Ridges high-grade reserve, whereas Matsu, its other deposit, only received mining tenements a few months ago.
The company said that it would continue to assess its options of developing the high-grade Matsu deposit and lower grade resources at the Ridges reserve.
KGM also advised that processing operations at the site will continue during February and that shipments from existing stockpiles have been completed.