Northern Territory iron ore miner, Sherwin Iron, has delivered a devastating blow to the Top End’s resources sector by announcing the company will go into voluntary administration, just weeks after announcing the temporary shut-down of the Roper River iron ore mine.
According to the ABC, Sherwin Iron went into a trading halt after the company failed to secure a $10 million financial loan.
Over the past year the company has exported 270,000 tonnes of ore to China from the Roper River mine located approximately 400km south east of Darwin.
The announcement comes less than a fortnight after fellow Top End miner,Territory Iron, announced it would be closing the Frances Creek Mine near the town of Pine Creek by November of this year.
Territory Iron informed locals of the decision at a town meeting earlier this month.
Speaking to the ABC, Mining services contractor Ray Wooldridge said those who attended the meeting were told operations would start winding down at the mine immediately.
“Basically [they said] it would be all over by November, apart from a small exploration crew and an environmental crew to look after the mine shut-down,” Mr Wooldridge said.
The news comes as a huge blow to the community of Pine Creek as the mine is the town’s largest employer.
Around 600 people live in Pine Creek, 200 kilometres south of Darwin.
In a statement published in the local Pine Creek community newsletter, a spokesperson for Territory Iron said, “The month of June has seen a reduction in production and processing of shippable ore due to challenges faced with accessing our proposed satellite pits at Elizabeth Marion,” the statement read.
“Unfortunately, we now have been notified by NT Environmental Protection Authority (EPA) that the proposed approval for mining at Elizabeth Marion will require an extensive Environmental Impact Assessment (EIS) before any work can commence.
“The decision is unexpected, given the small size of the proposed works.
“The EIS will be commenced immediately however this process is expected to be completed by mid to late 2015.
“Our current minable resources are also further challenged with declining iron ore prices which remain 30 per cent down on what was projected this year.
“The unprecedented combination of the EIS requirement and declining iron ore prices is creating some of the largest challenges Territory Iron has had to face.
“These challenges are being met head-on with all site teams working tirelessly to identify the most viable options for the operation.”
“The decision is unexpected, given the small size of the proposed works.
“The EIS will be commenced immediately however this process is expected to be completed by mid to late 2015.
“Our current minable resources are also further challenged with declining iron ore prices which remain 30 per cent down on what was projected this year.
“The unprecedented combination of the EIS requirement and declining iron ore prices is creating some of the largest challenges Territory Iron has had to face.
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