The crisis-ridden mining company Northland Resources stop its mining operations indefinitely. The reason is stated to be the company’s extremely strained liquid.
Northland has asked its major shareholder for new means to cope with the situation, but the owners said no at the end of September. As it can Northland not fulfill its obligations.
– Given the extremely challenging market conditions, the Board’s decision to halt operations at this stage the only way to avoid bankruptcy, this means regrettably that many skilled and committed staff must leave the company, says CEO Johan Balck in a written comment.
Northland Resources says now up most of its employees. Discussions with the unions has already begun.
– All our staff have worked hard to Northland’s best, and I am impressed by the devotion shown in these difficult times, says Balck.
Northlands CEO Johan Balck stated last summer in an interview with SvD Business that the company can do about iron ore prices remain above $ 85 per tonne. Today, the price under $ 80.
But the bad news is not just financial. Norrbotten County Administrative Board announced today, Tuesday, that they are investigating a large leak in the Northlands tailings. The investigation will show whether Northland has followed the rules and regulations of the state.
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