Newton Resources Ltd (1231) announced that its major hematite ore supplier Koolan Iron Ore Pty Limited, under Mount Gibson Iron Limited (ASX: MGX), experienced a significant rockfall on 16 October 2025 at its Koolan Island operation. Mount Gibson concluded that mitigation efforts for potential future instability, given the Koolan mine’s limited remaining lifespan, were not viable. Consequently, the mine’s production activities have been suspended, with processing of existing stockpiles continuing for near-term shipments.

Under the long-term supply agreement, Koolan is responsible for providing 80% of its total annual production to the Group. Several previously scheduled shipments for late 2025 have been deferred due to the incident. Newton Resources states that operations remain largely unaffected and that discussions are ongoing with Koolan to evaluate the overall impact on future supplies. Shareholders and potential investors are advised to exercise caution in dealings.