Mount Gibson Iron has confirmed the closure of its Koolan Island iron ore mine following a rockfall on October 16. The decision not to repair the damage will result in approximately 450 job losses. The news led to a 23 per cent drop in Mount Gibson’s share price on Friday morning. Mount Gibson Iron is an Australian mining company focused on the exploration, development, and operation of iron ore mines. The company aims to deliver strong returns to shareholders through efficient operations and strategic investments.
Koolan Island, located off the Kimberley coast, produces high-grade ore. However, with the mine’s expected life ending in September 2026, Mount Gibson determined that repairing and restarting operations was not viable, particularly given the safety challenges involved. Before the rockfall, the mine, once visited by Queen Elizabeth and Prince Phillip in 1963, was slated for closure in 2026.
The closure will result in 250 redundancies and the loss of 200 contractor positions. Mount Gibson has allocated $59.6 million for closure and rehabilitation costs, which will include the removal of jetties and other infrastructure at the remote site. A decade ago, Koolan Island experienced a similar incident when a wall separating the ocean from the mine collapsed, flooding the pit.
As of September 30, Mount Gibson held $473 million in cash reserves. These funds are earmarked for a strategic shift into commodities beyond iron ore. In line with this strategy, the company is set to complete a $50 million acquisition in March of a 50 per cent stake in the Central Tanami gold project in the Northern Territory from Northern Star Resources.
