Glencore has given up on an Australian-listed iron ore play less than a year after it reportedly paid $US1 billion ($1.32 billion) for rail and port infrastructure to support the project.

The Askaf iron ore project has been developed by Glencore under the banner of Australian-listed company Sphere Minerals, which is 88 per cent owned by the Swiss miner.

The Askaf deposit is located almost 600 kilometres from port in the west African nation of Mauritania, and Glencore agreed to an 18-year rail and port deal with a local government entity in June 2014.

The iron ore price was $US94.84 per tonne on the day the transport deal was announced, but with the sharp drop in iron ore, Glencore and Sphere have decided to withdraw from the project. Iron ore for delivery to the Chinese port of Qingdao last traded at $US57.61 per tonne.

"At current prices there is no prospect for profitable development of the Askaf project," said Sphere on Wednesday.

Deferment of the project has seen all construction commitments "closed out" and jobs cut.

Glencore may still be required to make payments for the rail and port access despite pulling out of the project, given a "take-or-pay" arrangement was a component of the 18-year deal.

Sphere and Glencore have vowed to monitor market conditions in case prices return to a level that warrants revival of the project.

Sphere will record a $US240 million impairment because of low iron ore prices.