Northern Iron suspends exploratory plans following iron ore price dive

Mining junior Northern Iron (ASX:NFE) has suspended exploratory plans due to sharp declines in iron ore prices which have severely affected the sector's other major players.

Sky News reports that the Australian-listed miner with key properties in Norway has halted its exploration plans in order to cut costs and better weather the impact of iron ore price declines.

Australian-listed Northern Iron is the 100% owner of the Sydvaranger Iron Project in the north of Norway which has a projected mine life of over 25 years.

In late July the company revealed it was the object of competing bids from Switzerland's Priminvest AG and India's Aditya Birla Group, with the Swiss bid reaching the $525 billion mark.

Iron ore price declines have taken a severe toll on major Australian miners with Australia's third largest iron ore playerFortescue Metals sending its share price into a tail spin last week after announcing it was seeking a 12-month waiver of its debt covenants.