Venture Minerals (VMS) will carry out a review and suspend work at its Riley Iron Ore Mine amid deteriorating market conditions.
VMS said work would be suspended only temporarily as the business works to identify cost efficiencies.
In a statement, the business argued lower prices and complications with the international shipping market, COVID-19 and the political environment had caused costs to skyrocket.
Venture made the announcement on Friday while also reporting it had competed its first shipment of iron ore from the mine in northwest Tasmania.
VMS's maiden shipment of 45,632 tonnes iron ore, with an average grade of 57.3 per cent iron, recently departed the Port of Burnie.
The shipment is bound for China for the off-take partner Prosperity Steel United Singapore — one of the largest iron ore traders in the world.
Managing Director Andrew Radonjic said despite the pause at Riley, he was confident the project was still valuable.
"Our inaugural shipment marks a significant milestone for Venture Minerals and is the culmination of considerable efforts by all stakeholders to successfully establish a resource base, secure environmental and transportation approvals, processing plant construction, commencement of mining and ore hauling and now first commercial iron ore shipment," Mr Radonjic said.
"We are looking forward to ramping up our operations at Mount Lindsay with tin at record prices, so that we can continue to provide long term employment in Tasmania’s northwest, make significant contributions to Tasmania’s economy and develop the Mount Lindsay ESG compliant EV Metal/Critical Minerals Tin-Tungsten mine."
Source: the market herald
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