Aus Asia suspends Solok iron ore mine
Tuesday, February 9 2016 - 12:57 AM WIB
ASX-listed Aus Asia Minerals Ltd said it has suspended operations at its iron ore Solok mine in West Sumatra after its only customer IDX-listed steel giant PT Krakatau Steel Tbk temporarily stopped production at its blast furnace in Cilegon, West Java, due to falling commodity prices.
Aus Asia said in a recent statement that it is not known when production at the steel mill and therefore purchasing of iron ore will recommence. Additionally, the government of Indonesia has banned the export of ores since early 2014.
?As a result, the company has temporarily suspended operations under the Solok project until there is a market for its iron ore resources,? Aus Asia said in the statement.
Aus Asia through its subsidiary PT Mineral Sukses Makmur execute an MoU in February of last year with PT Krakatau National Resources, a subsidiary of Krakatau Steel, to supply iron ore to the latter?s steel mill in Cilegon.
Editing by Reiner Simanjuntak