Jobs. Fifty-five positions will be made redundant as Grange Resources attempts to reduce costs.
The company owns and operates Australia’s largest integrated iron ore mining and pellet production business, with its mine at Savage River and its wholly owned pellet plant and port facility at Port Latta.
In a statement to the Australian Stock Exchange (ASX) on Friday, Grange Resources announced the redundancies represent less than 10 per cent of the company’s workforce and will include voluntary redundancies.
Chief executive Honglin Zhao said the action taken by the company was a direct response to the current iron ore price environment.
“The recent falls in the prices of our products mean it is vital that we reduce costs to protect the longer-term interests of our shareholders, staff, contractors and the communities in which we operate,” he said.
“Unfortunately this difficult environment has left us with little choice but to make a limited number of positions redundant in order to help ensure that our company and the Savage River projects [continue] to have a strong long-term future.”
Minister for Resources Paul Harriss said the news was “disappointing if not unexpected”.
“World iron ore prices have been falling for some time, and mining – like every industry – does not exist in a vacuum,” he said.
“The government has been in contact with the company, and the Rapid Skills Response Team will be supporting affected workers . . .
“We understand Grange will not be reducing production.
“For the north west, while this is a setback and we certainly feel for those workers and their families who will be affected, it has occurred against a trend of growing employment in the region.”
The latest ABS figures released last Thursday showed a 1.6 per cent fall in unemployment across the north west and west coasts since March 2014.