Northern Iron has cut jobs and suspended its exploration program to help offset the effects of falling iron ore prices.

The Norwegian-focused miner on Monday said it had launched a cost-cutting program to help weather the impact of falling iron ore prices.

It had suspended its exploration activities and axed an unspecified number of permanent and contract employee jobs as part of a restructure of its operations.

“The company is continuing to closely monitor its cash position and production performance against the background of these difficult market conditions and will take action as required to maintain an acceptable working capital position,” managing director John Sanderson said in a statement.

Shares in the company slumped on the news, closing down 5.5 cents, or 6.36 per cent, at 81 cents.

Mr Sanderson said the margin between the company’s third-quarter operating costs and expected sales price, coupled with the fall in iron ore prices was behind the move.

Northern Iron in July revealed it had two suitors vying for its attention, Swiss-based trading company Prominvest AG and India’s Aditya Birla Group.

Prominvest has offered $1.42 a share, while Aditya has offered $1.40.

Northern Iron operates the Sydvaranger magnetite mine in Norway, and expects to ship 2.2 million tonnes this year.