VINACHEM

Shares in Australian miner Mineral Resources Ltd. slumped by as much as 13% after the company suspended haulage of iron ore from its Onslow Iron project along the main road to port.

A truck carrying ore from the mine in Western Australia crashed on Tuesday when two of its trailers tipped over, Mineral Resources said in a filing, prompting an investigation by safety authorities. No one was injured and the company is conducting its own inquiry.
“Haulage is continuing via contractor vehicles using alternative routes,” the company said, adding that it did not anticipate an impact on shipment guidance for the financial year.

The Onslow Iron mine began shipments only last year, and is expected to produce 35 million tons of the key steel-making ingredient each year. However, the project has been plagued with transportation issues since the costly haulage road was impacted by heavy rainfall during the cyclone season.

Mineral Resources’ shares have sunk by about 65% over the past 12 months on low commodity prices, which have hit earnings, and revelations that its founder and managing director, Chris Ellison, had not declared payments to associated entities and engaged in “profoundly disappointing” conduct. Last month, the company posted a first-half net loss.  – Source: Bloomberg