A Western Australian iron ore industry group has reluctantly mothballed its activities, citing the difficult economic circumstances facing the industry.
A Western Australian iron ore industry group has reluctantly mothballed its activities, citing the difficult economic circumstances facing the industry.
Magnetite Network, which was set up six years ago, announced today it would suspend all education and lobbying efforts, following months of depressed iron ore prices, which reached record lows this week of below $US53 a tonne.
MagNet’s members include Asia Iron Holdings, Atlas Iron, BC Iron, CITIC Pacific Mining and Karara Mining.
Magnetite mines in WA include Citic’s $10 billion Sino iron ore project near Cape Preston, the Karara iron ore project in the Mid West and Fortescue Metals Group’s North Star project near Marble Bar, which is believed to be in early production phase.
Executive director Megan Anwyl said the group, which represented the interests of magnetite iron ore, as distinct from hematite iron ore, was hopeful today’s announcement didn’t mark the end of the group completely.
“Just like a mine site that goes on to care and maintenance, we hope to restart the network at a later date,’’ she said.
While most of the iron ore exported from WA is hematite, otherwise known as direct shipping ore, magnetite requires complex processing to increase its iron content to a level that can be used in steel making.
Its extra beneficiation is expensive and energy intensive but results in a product highly sought after by steel mills, which pay more for the final product’s higher concentration of iron ore and its more environmentally friendly credentials compared with hematite.
Karara Mining chief executive and outgoing MagNet chairman Dale Harris said MagNet would suspend its activities from June 30 and Ms Anwyl would take over as chairman next month.
“This decision was taken reluctantly by members due to market conditions and the need to reduce costs,” Mr Harris said.
“It is not a reflection on the quality work done by MagNet.”
He cited MagNet’s major achievements as educating legislators about the industry, attracting a state royalty rebate and royalty freeze, and lobbying for industry assistance under the federal government’s new Emissions Reduction Fund.
