OREANDA-NEWS. Australian iron ore mining company Pluton Resources is in the process of raising €50mn (\$56.4mn) in a bond offering, which could allow it to reopen its 1mn t/yr Cockatoo Island iron ore mine offshore Western Australia.

Pluton was returned to control of its board in directors in March after spending more than four months in administration. It launched a ?25mn (\$39mn) bond offering in May through its London-based subsidiary Irvine Iron Financing and then increased the scope of the offering last week citing an offer from financial institution to buy the additional bonds. Pluton plans to use the money it raises to pay down debt and to fund its Cockatoo Island and adjacent Irvine Island iron ore projects.

Mining contractor Watpac stopped operations at Cockatoo after Chinese creditor Rizhao Port appointed KordaMentha as administrators in November after Pluton failed to pay its debts. KordaMentha agreed to exit Pluton in March.

Pluton is still hopeful of being able to return to profit by reducing costs, despite the falling iron ore prices. The Argus price assessment for 62pc Fe iron ore fines is at \$62.90/t cfr China, up from a low of \$46.05 in early April, but still well down on the \$130/t seen in early 2014.