The General Services Manager of China Union Iron Ore Mining Company, Cloud Gao has said that he is currently operating at a loss due to the drop in the price of iron ore on the world market.
According to him, the current world market price of iron ore for a ton is US$55, thereby causing the company to lose up to US$30 for every ton produced.
He said though the situation is “very troubling” it will not cause his company to shut down its operations in Liberia.
Mr. Cloud said when his company started the production of iron ore in early July 2013, the price of iron ore per ton on the world market was US$150, which later dropped to US$135 at the end of 2013.
He said the drop of about 200 percent per ton was causing his company to lose about US$2.7 million per month in production cost.
He said currently, there are no indications that the price of iron on the world market will rise, but assured the Liberian government and people that China Union will stay in spite of the difficult times, adding: “In times of difficulties, you never abandon your friend.”
He revealed that China Union on a monthly basis produces between 80 to 90 thousand tons of iron ore.
He said the management of China Union has officially communicated with the Liberian government on the situation.