Junior iron ore miner collapses Junior miner Western Desert...

Junior iron ore miner collapses

Junior miner Western Desert Resources has collapsed, blaming the recent plunge in iron prices and the strong Australian dollar for its financial woes.The miner's board appointed voluntary administrators and receivers on Friday after Macquarie Bank withdrew financial support.

"The recent substantial fall in the iron ore price to a five-year historical low, which shows no sign of abating in the short term, when coupled with a strong Australian dollar, has substantially contributed to this outcome," the miner said in a statement released on Monday.

The move comes after the price of iron ore fell to fresh lows of $83.60 a tonne on Friday.
The price of Australia's most important commodity has fallen more than 37 per cent in 2014 due to additional supply hitting the market and slowing economic growth in China.
Western Desert said it had held ongoing talks with its banker about the restructure of its project finance, debt repayments and working capital.

However Macquarie withdrew its offer for short-term support last Wednesday.
The miner said while it had received other offers of financial support, it had been unable to seal any firm commitments. Shares in the company last traded at 14.5 cents before being placed in a trading halt on September 3. Shanghai-based CSLA analyst Ian Roper expects iron ore prices to fall to around $75 in the longer term.

A report last week by Mr Roper said if the price falls below $US80 a tonne for a prolonged period, more than 80 mines worldwide will need to close, including 13 in Australia.

https://au.finance.yahoo.com/news/junior-iron-ore-miner-collapses-003822789.html