Australian mining project faces rough weather as iron ore prices fall

China's second-largest steelmaker and its partners are mothballing a proposed iron ore project in Australia, the latest casualty of the market collapse that's seen prices hit a record low this month.

A partner meeting in Hong Kong on Monday decided to stop work on the feasibility study for the West Pilbara mine, rail and port project, citing market conditions and uncertainty about future supply and demand, according to the venture's railroad partner Aurizon Holdings Ltd. They agreed to meet around the end of first quarter 2016 to consider the market and the project's status.

Iron ore has sunk 43 percent this year as the top miners in Australia and Brazil pressed on with expansions, feeding a glut as demand in China faltered and squeezing smaller players. The partners Baosteel Group Corp, Posco and American Metals & Coal International and Aurizon had announced in May a deferral of a decision to proceed with the project until late next year subject to market conditions.