PERTH (miningweekly.com) – Junior miner Pluton Resources has suspended operations at its Cockatoo Island iron-ore mine, as commodity prices continue to fall.
The miner had halted operations following the departure of an iron-ore shipment in June, allowing for the design of a new mine plan to deliver cash cost reductions from operations.
The mine was currently on care and maintenance while Pluton negotiated a new service agreement with its mining contractor. The agreement had been drafted and would likely be finalised in the near future.
In the meantime, Pluton owed the Western Australian government some A$2.8-million in royalty payments from operations at Cockatoo Island. The company said on Friday that the government has agreed not to take any action against the company, provided that the outstanding amounts were settled by August 14.
The company said it was working towards meeting this deadline.
Pluton earlier launched a €50-million bond offering, which it said had received substantial interest. However, the receipt of proceeds was taking longer than expected, owing to certain administrative and regulatory procedures.
The company was working with its advisers in the UK to complete the final outstanding matters, with the company remaining confident that the issue would be fully subscribed with initial subscriptions expected in the coming weeks.