WA-based producer Mount Gibson Iron has stood down more than 200 staff at its Koolan Island operations in the Kimberley after aseawall slumped and flooded the main pit. Mount Gibson announced it was suspending main pit operations at the 3 million tonne per annum mine in October after a portion of the pit’s southern seawall slumped. Employees were redeployed to other parts of the project.
However a further slump occurred on 25 November, a month after the initial incident, flooding the pit. The company was forced to suspend all non-essential operations on the island, standing down the majority of its on-site workforce.
“Mount Gibson is evaluating the situation, but it is not yet possible to determine the extent of the likely impacts on the Koolan Island operation,” the company said in a statement.
Mount Gibson lowered its full-year sales guidance from between 6.6mt and 7mt to between 6mt and 6.4mt before the flooding began.
Following the flood, Mt Gibson said further engineering and technical assessment were required before it could update its sales guidance.
