RIO Tinto has decided to close its HIsmelt plant, which smelts high phosphorus iron ore fines and non-coking coal to produce a premium grade iron product.
The miner says the operation will be on care and maintenance until April 2010.
Rio Tinto has offered the 100 displaced workers redundancy packages. The company says 40 jobs will be kept to care for and maintain the plant.
Western Australian Premier Colin Barnett described the announcement as unfortunate but says it reflects current economic difficulties.
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