Australia's Western Desert calls administrators as iron ore price plunges

Written By Unknown on Senin, 08 September 2014 | 16.47

SYDNEY, Sept 8 Sun Sep 7, 2014 7:41pm EDT

SYDNEY, Sept 8 (Reuters) - Australian junior iron ore miner Western Desert Resources Ltd said it had called in administrators after failing to negotiate a deal with its bankers, due largely to plunging iron ore prices.

Western Desert, which started mining at its Roper Bar mine in the Northern Territory last December, said it was suspending its shares and appointing an administrator after Macquarie Bank rejected its funding proposals.

"The recent substantial fall in the iron ore price to a five year historical low, which shows no sign of abating in the short term, when coupled with a strong Australian dollar, has substantially contributed to this outcome," the company said in a statement.


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