Oct 1 (Reuters) - Australia's Mount Gibson Iron Ltd (MGX) said on Friday it will suspend operations at its Shine iron ore project in Western Australia to wind down expenses following a surge in the prices of the steelmaking ingredient and shipping costs.
Iron ore futures jumped to a three-week high on Thursday after Fortescue Metals Group (FMG) halted iron ore mining operations at its Solomon Hub site in the Pilbara region, which has an annual production capacity of 75 million tonnes.
Mount Gibson's Shine project will continue mining and processing in October to make a shipment at the end of the month, after which operations at the site will be suspended pending "improvement in iron ore market conditions", it said.
"This is a disappointing decision for the company given that the Shine mine is in its first year of operation," Mount Gibson said.
"However, it is a commercially sensible decision necessary to limit cash outflows and preserve the future optionality of the Shine deposit."
Mount Gibson also withdrew its sales outlook for Shine of about 1 million wet metric tonnes (Mwmt) for fiscal 2022. The miner is targeting https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02411404-6A1047003?access_token=83ff96335c2d45a094df02a206a39ff4 group sales of between 3 Mwmt and 3.2 Mwmt for fiscal 2022.
Shares of the iron ore miner were down nearly 7% at A$0.45, as of 0023 GMT, their worst intraday drop since Sept. 17.
Oct 1 (Reuters) - Australia's Mount Gibson Iron Ltd (MGX) said...
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