UPDATE 1-Australia's Atlas to suspend mining due to low iron ore price

viernes 10 de abril de 2015 04:27 GYT
 

* Atlas Iron to suspend all mining this month

* Blames low iron ore price

* Says extensive cost cutting not enough

* More Australia miners under threat as supply glut swells (Adds quotes, details)

By James Regan

SYDNEY, April 10 (Reuters) - Australia's Atlas Iron Ltd said on Friday it will progressively suspend mining this month due to low iron ore prices, the latest casualty in a strategy by larger producers to flood the sea-traded market into China.

Atlas, which is scheduled to ship the majority of its projected 13 million tonnes of iron ore this year to China, said exports will cease shortly after mining is halted.

"Despite an extensive cost-cutting program... 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 said in a statement.

Iron ore is veering to a new crisis as prices for future delivery of the commodity slide 30 percent in a month, and its outlook is now more bearish than oil.   Continuación...