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Australian Mining reported that Arrium Ltd. (ASX:ARI) plans to mothball its Southern iron mining operation. It plans to redesign the South Australia-based complex to provide sustainable cash flow in light of falling iron ore prices.
Australian Mining reported that Arrium Ltd. (ASX:ARI) plans to mothball its Southern iron mining operation. It plans to redesign the South Australia-based complex to provide sustainable cash flow in light of falling iron ore prices.
As quoted in the market news:
As part of the plan, Arrium will focus on its lower cost Middleback Ranges operation and close the Southern Iron mine complex.
Southern Iron incorporates the Peculiar Knob project as well as the Buzzard and Tui DSO hematite and magnetite deposits.
Arrium said the move would reduce cash costs by 20 per cent from $71 per dry metric tonne in 2014 to $57/dmt in 2016.