Iron ore miner Rio Tinto has decided to close its HIsmelt pig iron operation in Kwinana. Rio disclosed it had terminated the JV that ran the technically acclaimed but financially unviable operation.

The plant has been in care and maintenance mode since late 2008, as a result of the global financial crisis. Rio had already written off most of the carrying value of the plant and it made the majority of the 130 strong workforce redundant in late 2008, when operations at HIsmelt were suspended in the wake of the global financial crisis.

A Rio spokesman said that work on closure studies have begun and the company expects the shut down to be completed in 2014.

The HIsmelt plant, the partners are Rio (60%), Nucor Corporation (25%), Mitsubishi (10%) and Shougang Corporation (5%), was the result of a commitment by Rio to establish a mineral downstream processing plant in return for WA Government approval to mine the massive Yandicoogina iron ore deposit in the Pilbara.

The technology for the plant was devised to handle high phosphorous iron ore and produce molten iron from fines and non coking coals. China's steel industry has been a keen observer of the HIsmelt technology, while a European consortium is in the throes of testing the technology at a mill in the Netherlands.

(Sourced from www.abc.net.au and Western Australia)