Iluka will close its Hamilton treatment plant in west Victoria following a delay in iron ore production at its Kulwin mine.
The Hamilton plant was upgraded earlier this year to treat 80tphr of feed from the Kulwin and Douglas mines.
However, delays at the Kulwin mine has minimised production and reduced output to a level which does not require the Hamilton plant to be in use at the current time.
Iluka’s general manager for the region Peter Beilby said the closure is the best option for the company to minimise costs and ensure no jobs are lost.
“Our Douglas mine simply can’t product enough material to keep it running at the moment,” he told MINING DAILY.
The Hamilton plant will close at the end of the month before re-opening again in August when production is expected to resume as usual.
“There will be no job cuts and production will pick up in the short term future,” Beilby said.
The plant’s 106 full-time staff will take annual leave until production normalises and there is sufficient stockpiled material for treatment.
Beilby does not expect the will be extended any further.