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PrintThe steep drop in iron ore prices has prompted Northern Iron to suspended its exploration program.
The Norwegian-focused miner on Monday said the suspension was part of a cost-cutting program introduced to help weather the impact of falling iron ore prices.
A restructure of its operations had also resulted in an unspecified number of permanent and contract employee job losses, it said.
"The company is continuing to closely monitor its cash position and production performance against the background of these difficult market conditions and will take action as required to maintain an acceptable working capital position," managing director John Sanderson said in a statement.
Shares in the company slumped on the news, with the stock down seven cents, or eight per cent, at 79.5 cents at 1101 AEST.
Mr Sanderson said the margin between the company's third quarter operating costs and expected sales price, coupled with the fall in iron ore prices was behind the move.
Northern Iron in July revealed it had two suitors vying for its attention, Swiss-based trading company Prominvest AG and India's Aditya Birla Group.
Prominvest has offered $1.42 a share, while Aditya has offered $1.40.
Northern Iron operates the Sydvaranger magnetite mine in Norway, and expects to ship 2.2 million tonnes this year.(Source:www.ninemsn.com)
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