Delays in receiving environmental approval for the $1.8 billion Karara iron ore joint venture have prompted Gindalbie Metals to make redundant 24 employees.
The company has also suspended all of its regional exploration program, making the Karara JV with AnSteel its sole focus.
Gindalbie spokesperson Michael Weir told WA Business News that Gindalbie had hoped to be on site now at the Mid West project, which is expected to underpin the $4 billion Oakajee deep water port.
The delays stem from a conditional environmental recommendation given by the Environmental Protection Authority, received in May this year, some three years after the original documents were lodged.
Gindalbie has lodged an appeal.
Mr Weir said the company is working through the appeals process and Gindalbie anticipates receiving approval in September and be on site in the December quarter.
In the meantime, the company has placed the construction of the Karara workers camp on care and maintenance and postponed a number of non-critical pre-mining activities.
As a result, Gindalbie has reduced its total workforce by 21 per cent, leaving 89 employees.
Shares in Gindalbie closed down 2.5 cents to 84c today.
