ABC News reported that iron ore miner Grange Resources remains committed to its multi billion dollar Southdown magnetite project on WA's South Coast, despite announcing major job and expenditure cuts.
Grange Resources said that its planned 2015 start date for the project near Albany will be delayed, blaming an uncertain market and high development costs.
It said that it will cut 18 jobs from the project and will spend less than USD 3 million on it in 2013, after spending more than USD 70 million over the last 3 years.
Mr Richard Mehan MD of Grange Resources said that the difficult financial markets mean the decision was in the best interests of shareholders. The project will still go ahead, but it is too hard to say when.
Mr Mehan said that "It's very difficult for export projects and the future is that I think this thing will be built, but clearly from what we've done today there's going to be more delays."
The project was expected to generate up to 600 jobs.
Mr Tim Treadgold business analyst said that the move makes sense because of issues including the low iron ore price. It's not a good time to be trying to develop a big new iron ore project
Mr Treadgold said that "Incidentally, this is exactly the same situation Gina Rinehart is encountering with her Roy Hill project. It is a very difficult time to raise money and build a new project in Australia at the moment, Australia is not a very welcoming country for new investment."
Source - ABC News
