Iron ore project in the Far East proves to be unprofitable

The subsidiary of gold company Petropavlovsk iron ore IRC in the Far East has suspended mining at the Kuranakh mine, the company reports. The costs in winter make the operation unprofitable, and IRC decided to transfer the mine in the mood of care and maintenance. The prime cost of the iron ore mining from this mine was $53 per ton by results of the second quarter.

Yesterday, on December 14, ore with 62% content of iron cost $39 per ton, according to the Bloomberg.

"We believe we did everything possible to prolong the economic life of Kuranakh, - executive chairman of IRC Jay Hambro states. - Continuation of the Kuranakh operation will be devastating to IRC".

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