As the iron ore price continues its rapid decline, hundreds of jobs are on the line.

Atlas Iron has announced it will close its mining operations, leading about 600 people to lose their jobs.

The company will suspend mining for the remainder of April, and cease its exports soon after.

The iron ore price dive has seen it lose 25 per cent of its value since the beginning of the year, and is now trading at a 10-year low of $US47 a tonne.

Atlas Iron has not broken even on iron mining since it was up at $US60 a tonne.

Atlas’ projects will on care and maintenance while the company waits for better iron ore market conditions.

Mining and crushing will cease at the Mt Webber project this week, and operations at Atlas’ Abydos project are expected halt within 14 days

“To suspend our operations, with the impact that will have on so many committed and talented people, is an extremely difficult decision,” Atlas Managing Director Ken Brinsdensaid.

“I sincerely thank all those who have worked so hard to build Atlas’ production base and those who have worked furiously to maintain Atlas’ competitive position over the past 15 months, in the face of increasingly oppressive market conditions.”

Western Australia Premier Colin Barnett said the mass-sacking was of “immense concern” and slammed market leaders like BHP Billiton, Rio Tinto and Fortescue Metals Group for continuing to pump more ore into the market despite diminished demand.

Barnett warned mining companies that they did not actually own their iron ore reserves.

“The State Government owns the iron ore and we are not willing to simply allow the iron ore continue to be sold at throwaway prices - and that's a pretty clear message to the iron ore industry,” he said.

“Don't forget who owns the iron ore, who controls the projects, who controls the ports, who controls tonnages and the like.

“I cannot understand the business strategy of the three big major iron ore producers of flooding the market when the market is weak.

“That is just a flawed strategy and not only has it hurt a company like Atlas Iron - dramatically - I think the companies are hurting their own shareholders and indeed the market.”