Australia's IMX Resources said Monday it will end iron ore shipments from its Cairn Hill mine in South Australia over October-December, a quarter earlier than expected.
The company said it moved up the timing from January-March 2015 after an unexpected reduction in mineable reserves.
About 360,000 mt or 5% of Cairn Hill's mineable reserve will be lost in 2014 after recent rain created instability in the mine's north wall and an intrusion of waste into areas predicted to be ore, IMX said in a statement.
"While the instability of the pit wall will impact immediate production, it is expected that the effect on shipping in the March quarter can be mitigated by using existing stockpiles," IMX said.
Around 140,000-220,000 mt of the lost tons will be made up from additional ore sources at Cairn Hill.
Cairn Hill, which is 55 km from the town of Coober Pedy in South Australia, is a joint venture between IMX Resources (51%) and Chinese trader Sichuan Taifeng (49%).
The JV partners are still assessing the viability of a second-phase extension to Cairn Hill that could allow production to continue until late 2015, IMX said, adding that the decision would be made by the end of this month.
Cairn Hill's proposed second phase is adjacent to the current mining operation and contains an indicated mineral resource of 3.77 million mt at 47.8% Fe for 1.7 million mt.
IMX expects to produce 1.7 million mt of iron ore in 2014 if the second phase is approved.
The existing equipment, haul road and rail and port infrastructure would be used to mine the second phase.
IMX is also developing the 2.5 million mt/year Mount Woods magnetite project in South Australia.
