The Ridges iron ore mine in the Kimberly has been put on care and maintenance, after exhausting the high grade reserve.
Mine owner Kimberly Metals Group (KMG) said commodity price, market conditions and exchange rates influenced the decision.
Ridges has been operational since 2011, and was estimated by KMG to have a four year life.
The mine produced six million tonnes of high grade iron ore by January 2015.
KMG also owns the Matsu iron ore project, a nearby satellite to the Ridges mines which had a mining lease granted in 2014.
KMG will assess the viability of commencing mining of the Matsu project.
Ridges will complete processing of stockpiles in February.