Western Desert Resources has called in administrators after falling victim to a sliding iron ore price.
The Darwin-based junior miner appointed Korda Mentha on Friday after Macquarie Group decided to stop bankrolling WDR’s flagship Roper Bar mine.
It is understood WDR was attempting to restructure an $80 million debt facility.
Ferrier Hodgson have been appointed as receivers, with a creditor meeting scheduled for September 17.
High operating costs and the continuing fall in the price of iron ore has been blamed for WDR’s collapse.
Already down 38 per cent this year, the steelmaking ingredient slipped to new lows on Friday, hitting $US83.60 a tonne.
Roper Bar mine, located 50km from the Gulf of Carpentaria coast, exported its first shipment of iron ore last November when the iron price was fetching $US130 a tonne.
However problems with its ship-loading barge system at the port of Bing Bong, coupled with the Top End’s wet season coincided with the tumbling price of iron ore.
Mining contractor Thiess is also set to fall victim of the collapse after being awarded a three-year contract worth $135 million in January.
WDR owns four other iron ore tenements, five gold projects and a rare earths uranium project.