Iron Ore Miner Arrium Is Getting Smashed

This could get ugly. Picture:

Iron ore miner Arrium is getting hammered on the Australian stock market today with shares down about 8% to $0.207.

The resources company announced this morning it was shutting its South Australian mine it bought in 2011 for $320 million and flagged more than $1.3 billion in write-downs as part of a cost-cutting drive prompted by falling iron ore prices.

There are reports about 600 jobs will be lost when the Southern Iron mine is closed.

Mid-tier iron ore miners have been under huge pressure in recent months with the drop off in the iron ore price which was down another 1.5% overnight to $US66.79 a tonne.

Here’s the chart which shows the miner’s shares plunged in early trade before recovering about half the losses only to fall lower again.

NOW READ: CASUALTY: Arrium Is Shutting A Mine In South Australia As Iron Ore Prices Hit A New Low

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