Three resign from BC Iron board as the falling iron ore price starts to squeeze.
Founding director of the company Mike Young along with Malcolm McComas and Peter Wilshaw resigned as non-executive directors effective immediately.
These resignations reduce the board from eight to five and reflect the need to manage costs, the company said.
Fees for the remaining non-executive directors will also be reduced from January.
BC Iron Chairman, Tony Kiernan, thanked the outgoing board members.
“Specifically, Mike Young requires special acknowledgement as the founding managing director of BC Iron. Mike was instrumental in transforming the company from an explorer to a producer in a short timeframe,” Kiernan said.
Iron ore is now down around 50 per cent since the start of the year, with many smaller miners like BC struggling to break even.
Kiernan told The Australian while the iron ore slide had been sudden, he was optimistic prices would pick up.
“It happened quite dramatically and quite quickly. I think the price has overshot the market,” Kiernan said.
“The speed of it and the volume of it was a surprise but I do believe it will now settle and I can see it sitting between $US80 and $US90 a tonne in the not too distant future.”