Copper producer, Aditya Birla Minerals has halted operations at its Birla Mt Gordon site blaming poor production performance, uncertain economic conditions and a weaker copper price for the decision.
The company said it had suspended operations at the Queensland mine because of a weakening copper price which has fallen to $US7700 per tonne since the mine reopened in January 2011.
When Aditya Birla reopened the mine the copper price was sitting at $US9600 per tonne.
The company said operating costs at the site had become unacceptably high and were negatively impacting on the overall profitability of the company.
Uncertain economic conditions in Europe and a slowdown in the Chinese housing market also contributed to the company’s decision.
The closure marks the second time operations at the Mt Gordon site have been halted after the site was placed under care and maintenance in January 2009 because of a weak copper price.
The company expects the closure to result in annualised savings of between $12 million and $15 million from existing operations.
Shares in Aditya Birla closed down 1 cent at 48 cents.
