Iron Ore Junior Pushes on with Mine Plan

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.


Share On Stumble


 characters available
*Please refer to our comment policy before submitting