China's Sinosteel Corp. on Thursday suspended its Aus$2 billion (US$2.1 billion) Weld Range iron ore project in Australia, frustrated by delays in the development of the Oakajee deepwater port.
In a statement, Sinosteel said it would "wind up all work at Weld Range apart from the finalisation of outstanding approvals and the close-out of selected work underway".
"We are certainly not closing the door on Weld Range, however we must make the right business decisions in order to protect our assets and ensure a realistic future for our organisation," Sinosteel Midwest Corporation chief operating officer Julian Mizera said in a statement.
Sinosteel, one of China's largest iron ore traders and a foundation customer for the planned Oakajee port, said the mine would remain closed until uncertainty around the development was resolved.
Forty-three jobs will be lost.
Oakajee is a joint venture between Murchison Metals and Japanese company Mitsubishi that involves construction of a port and railway to export 45 million tons a year of iron ore from the midwest region of Western Australia.
It was due for completion by 2012 but that has been put back until 2015 due to cost blow-outs and reports that Mitsubishi could pull out.
The Weld Range mine was due to start up in late 2015 and produce 15 million metric tons of iron ore annually for at least 15 years, Sinosteel said.
— Dow Jones Newswires contributed to this report —
