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Why is the Mineral Resources share price slipping on Tuesday?

A fatal incident occurred at the Onslow Iron site yesterday.

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Mitchell Lawler
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Key points
  • An employee of a contractor at the Onslow Iron project sadly lost their life yesterday
  • Mineral Resources is supporting the affected family and colleagues
  • Operations at the Ken's Bore site have been suspended

The Mineral Resources Ltd (ASX: MIN) share price is moving lower today amid some saddening news.

At the time of writing, the mining company's shares are swapping hands at $67.61, down 3.1% from their previous closing price. The negative move follows news of an incident at MinRes' Onslow Iron project that has sadly led to the death of a person on the site.

A sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile.

Image source: Getty Images

What happened at Onslow Iron?

Mineral Resources reported the tragic fatality to the ASX and the company's shareholders this morning. According to the company's release, the incident occurred at around 4:00 pm yesterday, 12 June 2023, and involved an employee of a contractor at the Ken's Bore site.

The relevant authorities, including The Department of Mines, Industry Regulation and Safety (DMIRS) and the WA Police, had been contacted and were on their way to the site at the time of the announcement's publishing.

Following the news, the Mineral Resources share price is moving to the downside as shareholders await further information.

In response to the tragedy, MinRes managing director Chris Ellison said:

We are shocked and deeply saddened by this tragedy. Our thoughts are with the family, friends, and the whole Onslow Iron team, and our focus is on supporting them during this difficult time.

Unfortunately, this is not the only fatal incident to occur this month in the Australian resources sector. On 3 June, a person died at the North Rankin gas operations, an offshore gas platform owned by Woodside Energy Group Ltd (ASX: WDS).

Lastly, operations at Onslow Iron have been suspended following yesterday's incident.

A tough year for the Mineral Resources share price

The devastating death comes after MinRes acknowledged a delay to the Onslow Iron project back in February. Originally, the plan was to be sending iron ore out by the end of this year. However, approval issues have nudged it back into 2024.

Furthermore, the Mineral Resources share price has been under pressure so far in 2023. On a year-to-date basis, shares are now down 10% despite the company's latest half-year figures showing a 74% increase in revenue.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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