Sinosteel suspends iron ore mining operations at Blue Hills, WA

CANBERRA (Scrap Monster): The China-based Sinosteel Mid West Corporation (SMC) has announced suspension of works at its Blue Hills Mungada mine in Western Australia. The proposed shutdown of the mine is expected to affect over 100 employees.

According to the company, the plunging iron ore prices have made the mining operations at Blue Hills unprofitable. In addition the longer-than-expected delay in obtaining environmental approvals for extension of operation at the mine too has forced the company to shut its operations. Moreover, the recent revision in royalty charges for ores sold at the mine gate has increased the company’s costs significantly. The company employs approximately 110 workers including contractors. The company management stated that the decision is ‘disappointing’, but it had no other alternative.

Meantime, Environment Minister Albert Jacob stated that the company’s proposals seeking environmental approvals were being assessed on merit and there were no intentional delay in the matter.

Earlier, during last week, Atlas Iron had announced its decision to halt mining and export operations in the region by end-April.