Reuters recently reported that Anglo Russian miner Aricom Plc is suspending operations at its Kuranakh iron ore mine in the Russian far east because of falling prices.

Mr Jay Hambro CEO of Aricom Plc said that however, the company was confident the project would be a profitable contributor when its Olekma plant is commissioned in 2009 to realize sales of higher margin iron ore and ilmenite concentrates despite the depressed market.

Aricom began shipping pre concentrate ore to clients from the mine in June when demand from steel producers was high.

Once the Olekma plant is commissioned in mid 2009 Aricom will be able to deliver iron ore concentrate to the Chinese market at a fraction of the cost of Australian shipments.