The future of BC Iron's Nullagine mine is in doubt as iron ore prices slump

Image: Port Hedland Port Authority.

BC Iron has gone into a trading halt while it considers whether or not to continue mining at Nullagine, its main asset in the Pilbara.

The review is being made in the light of a sharp decline in iron ore prices, below $US40 a tonne. Some analysts put BC Iron’s cost of production at $US52.

BC Iron has 75% of the Nullagine joint venture and Fortescue Metals the rest.

The company says the the review is solely related to the Nullagine and not its other iron ore projects at Iron Valley, operated by Mineral Resources Limited, or the Buckland mine and port development project in the West Pilbara.

Atlas Iron started mothballing its mines early this year when prices fell below the cost of digging the ore out of the ground. The company alter resumed mining after doing deal with suppliers to cut costs.

Fortescue Metals was trading down 1.5% today to $1.792. BC Iron last traded at 19 cents.

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