Major Miners Put Iron Projects on Hold as Australia Key Port Stall

Reuters reported that mega miners such as Japan’s Mitsubishi Corp have put projects on ice due to the falling prices of iron ore, thereby stalling the completion of Australia’s key port, which could pave the way for a large iron ore belt export to the Asian market.

As quoted in the market news:

“Hit by weaker iron ore prices, projects like Oakajee and the mines to back it up have become too expensive in Australia where there are some $270 billion of resource projects underway, all competing for workers, equipment and materials.

“The cost structure of these projects has gone through the roof. Just on economics, a lot of these have become too hard to justify,” said Darko Kuzmanovic, a resources fund manager at Caledonia Investments.”

Click here to read the full Reuters report.