imo arrium is doomed, wont be long and they will have to close there other mines if iron ore prices keep diving the way they are. Rio has announced it will be cutting 800 jobs from there iron ore operation in the west, if the IO prices are hurting a big company like Rio, imagine what its doing to Arrium.. 10 percent of the job cuts from Rio are office based staff, guessing the rest will be operations based. Wouldn't surprise me if it hasn't already happened, Arrium run on a skeleton crew to save money, just run the basics at there current operations and wont be renewing any contracts about to run out.
"Most analysts are predicting the commodity to trade in the range of $US60-$US65 a tonne for much of the next two years, though some have called for a brief retreat into the $US50s at some stage before a price floor can be found"
Current IO price ; $US63
ARI Price at posting:
22.0¢ Sentiment: Sell Disclosure: Not Held
