Glencore unit delays Mauritania project due to iron ore price fall

LONDON, Oct 29 (Reuters) - Sphere Minerals, a subsidiary of commodity trading and mining giant Glencore said it will slow down development of its Askaf iron ore project in Mauritania in response to the fall in prices for the steel ingredient.

Iron ore has lost about 40 percent of its value so far this year and is expected to decline further in the next few years as additional supply more than offsets weaker demand growth.

The price plunge has already pushed some smaller, less cost-efficient miners out of the market and is making some new projects unprofitable.

"In light of prevailing iron ore market conditions, the board of Sphere has decided to initiate a review of the Askaf project, resulting in a slowdown of the project," the company said in a statement filed with the Australian Securities Exchange. "Taking into account the time involved in this review it is currently expected that the start of production will be delayed," it said, without being more specific.

In May, Glencore (Xetra: A1JAGV - news) said the Askaf project was expected to cost $900 million and production was due to start in early 2017. (Reporting by Silvia Antonioli; Editing by Pravin Char)