Sept 4 Iron ore miner Labrador Iron Mines
Holdings Ltd said it lowered its exploration budget for
the year as a decline in iron ore prices forces it to cut costs.
The exploration program for the year has been cut to C$5
million from the original budget of C$8.6 million. The miner
also deferred capital expenditure relating to its Silver Yards
processing plant and Houston deposits in Quebec.
"Our current second quarter is being impacted by the rapid
drop in spot iron ore prices," Chief Operating Officer Rod
Cooper said in a statement.
Iron ore prices have dropped by a third, or almost $50 per
tonne, since July, as Chinese steel producers shun cargoes and
the appetite of the world's largest consumer cools.
The Toronto-based company owns 20 deposits in the iron-rich
Labrador Trough region, which straddles the border between
Quebec and the province of Newfoundland and Labrador.
Labrador Iron Mines said it remains on track to meet its
2012 sales target of 2 million tonnes of iron ore at a cash
operating cost of $60-$65 per tonne.
Shares of the company closed at C$1.71 on Friday on the
Toronto Stock Exchange.