Queensland Ores has suspended operations at its Wolfram Creek mine west of Mareeba, blaming the financial crisis and a downturn in metal prices.
The company was the nation’s first tungsten-molybdenum producer in the current mining cycle.
In a letter to the Australian Stock Exchange, the miner admitted operations have been suspended in a bid to conserve cash.
Twenty —six workers will lose their jobs.
Australian Mining received a statement from the company acknowledging the suspension will result in the retrenching of employees.
“All Wolfram camp employees have received briefings from the company over recent weeks,” the statement read.
“Retrenched employees will be offered appropriate packages and assistance to obtain alternative employment.
“As an initial measure, Queensland Ores will be seeking to engage a local recruitment agent to assist affected employees.
According to the ASX, the decision will allow the miner address issues at the treatment plant including low recoveries.
At close of business yesterday the company’s shares were trading at 1.1 cents.