Iron ore miner Grange Resources has warned of job losses as it races to cut costs to keep up with sliding commodity prices.
The company, which owns the Savage River iron ore mine in Tasmania, and operates a pellet manufacturing facility nearby, said it is working on an optimisation strategy to reduce costs and boost margins.
"Due to continued weakness in the iron ore price and subdued pellet demand, combined with the optimisation strategy, redundancies may be made," Grange said on Wednesday.
It expects to complete the review in early 2016.
Iron ore prices have halved over the past year, on the back of global oversupply and a slowing Chinese economy, forcing most smaller players to shutter their projects.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
In August, Grange reported half year net loss of $80 million after writing down the value of the Savage River mine. It continued to make a small margin from the iron ore operations in the September quarter.
Iron ore prices, have however, slumped since then, with spot iron ore prices currently hovering around $US42 a tonne.
Grange has also scaled up production of iron ore pellets, used in steelmaking, but holds long term supply contracts for less than half its output.
Shares in the company added 0.4 of a cent to close at 9.5 cents.
