MOUNT Gibson Iron has been requested by its Chinese customers to delay shipments in the second quarter of fiscal 2009.
"Customer and iron ore sector analysis indicates a slow down in demand for iron ore in China due to current economic uncertainty and the tightening of credit facilities, leading to reductions in steel production and the current significant build up of iron ore stockpiles at Chinese ports," the company said in a statement.
Mount Gibson (ASX: MGX) said its customers have entered into binding long-term sales agreements and it isn’t obliged to agree to their requests to delay shipments of hematite ore in the second quarter.
The Perth-based miner said it will try to reach an acceptable agreement with customers and take any necessary steps to minimise any disruption to its operations.
The company also announced it has received final Federal Government environmental approval of management plans for its Extension Hill direct shipping ore project.
FMS Price at posting:
6.0¢ Sentiment: None Disclosure: Not Held
