The chairman of Flinders Mines has told investors that it is pushing ahead with plans to develop an iron ore mine despite a fall in prices.
Flinders signed a deal in February to be part of a joint venture to develop a new $3.3 billion port and rail project in the Pilbara, halfway between BHP Billiton and Rio Tinto’s major ports.
However since then the iron ore price has plunged from $US120 a tonne to about $US80, putting pressure on junior miners such as Flinders to get financing.
Flinders chairman Bob Kennedy told shareholders at the company’s AGM that a capital raising and drilling this year had given the company confidence to go ahead with a bankable feasibility study ahead of possibly building a mine.
“Iron ore, like all commodities, experiences its cyclical ups and downs but is still one of the most profitable businesses in the mining industry,” he said.