Mt Riley succumbs to poor iron market

Venture Minerals have announced operations have been suspended at the Riley Creek mine in Tasmania.

Pre-production works were halted last month due to the falling price of iron ore, although Venture said in a statement to the ASX that the completed work will remain in place to enable a quick commencement of production should economic opportunities present in the medium term.

The Riley Creek mine was plagued by significant delays caused by legal action initiated by the Save the Tarkine (STT) environmental group.

The case presented by Save the Tarkine was characterised as “frivolous”, with Justice Richard Tracey declaring that the environmental group had “failed to make good any of its grounds”, and should pay costs to the Commonwealth and Venture Minerals.

Venture Minerals said they continue to be party to appeal proceedings, and are actively seeking to recover all legal costs associated with STT legal challenges.

Riley Creek DSO was supposed to employ 60 staff for two years, with a value of $80 million to the local economy.

It was also to be used by Venture Minerals to fund the larger Mount Lindsay mine.

Company directors Norman Ashton, Bruce McFadzean, John Jetter, Hamish Halliday and Andrew Radonjic disposed of a total of 6,750,000 $0.45 share options on the 15th of August, four days before the notice of the Riley Creek suspension.

The mining lease for Mount Lindsay open-cut tin mine was granted by the Tasmanian minister for resources in July.

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