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- GWR Group (GWR) suspends mining operations at the C4 Iron Ore Mine on the back of fallen iron ore prices
- Unfortunately for the company, the suspension follows a record operational month with 139,422 tonnes of ore transported in August
- Despite the loss in momentum, GWR says the WA project is ‘production-ready’ and is prepared to take advantage whenever iron ore prices do recover
- GWR officially halted operations on September 19 and expects this to last 30 days while it assesses project economics and reviews market conditions
- Company shares are down 10.7 per cent to trade at 12.5 cents at 12:25 pm AEST
GWR Group’s (GWR) shares have dropped after announcing it will suspend mining operations at the C4 Iron Ore Mine in Western Australia.
The decision follows the downturn of iron ore prices and GWR will monitor the iron ore price to assess when to recommence operations.
Unfortunately for the company, the temporary suspension follows a record operational month with 139,422 tonnes of ore transported from site to the Port of Geraldton in August.
Despite the loss in momentum, GWR said its wholly-owned project remained in a ‘production-ready’ state and was prepared to take advantage whenever iron ore prices did recover.
The materials stock has maintained an opportunistic approach for its Wiluna-based operations, starting when the iron ore price was high and the AUD relatively weak in trading terms and after negotiating a contract with PRG that reduced risk and the requirement for capital.
This arrangement allows the company to turn its operations on and off should the profit per tonne fall below A$10.
Chairman Gary Lyons commented on the suspended operations.
“Whilst it is disappointing that mining operations have temporarily ceased at the C4 Iron Ore Mine, it is important to note GWR remains in a strong position to resume operations as the mine will be left in a production ready state in order to take advantage of a recovery in iron ore prices,” he said.
Around 315,500 tonnes of ore is either on the run-of-mine pad, crushed and stockpiled ready for transport or blasted in the pit and ready for digging.
“GWR is currently engaged with other iron ore producers who have expressed interest in accessing via minegate sale the mined high grade ore in order to blend it with their product.”
The company halted operations on September 19 and expects this to last 30 days while it assesses project economics and reviews market conditions.
Company shares were down 10.7 per cent to trade at 12.5 cents at 12:25 pm AEST.
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