Atlas Shuts Down Production in Response to Low Iron Ore Price

Atlas Iron (ASX:AGO) announced the suspension of its mining operations over the month of April due to significant falls in the iron ore price.

As quoted in the press release,

Despite an extensive cost-cutting program, to which staff and contractors have made significant contributions, the global supply demand imbalance for iron ore has driven prices down to the point where it is no longer viable for Atlas to continue production.

Atlas Managing Director Ken Brinsden stated:

To suspend our operations, with the impact that will have on so many committed and talented people, is an extremely difficult decision. I sincerely thank all those who have worked so hard to build Atlas’ production base and those who have worked furiously to maintain Atlas’ competitive position over the past 15 months, in the face of increasingly oppressive market conditions.

Click here for the full Atlas Iron (ASX:AGO) press release