Just under 600 jobs will be shed from South Australia’s mining sector with Arrium Mining announcing the closure of the Southern Iron Project, south of Coober Pedy.
Arrium said is was forced to mothball the project and shed it’s workforce due to the plummeting price of iron ore.
200 full-time employees and 380 contractors will be affected by the job cuts.
Speaking to the ABC, Arrium chief executive Greg Waters, said the decision was made for the greater good of the company.
“One of the concerns we obviously had was that this could put the entire business in jeopardy,” Mr Waters said.
Mining company Arrium to cut 600 jobs in SA amid falling iron ore price – ABC News (Australian Broadcasting Corporation)
SA’s Mineral Resources and Energy Minister Tom Koutsantonis said the iron ore industry worldwide was adjusting to a collapse in global prices.
“This significant fall in pricing has put enormous pressure on iron ore mines across Australia, including in the NT and WA. South Australia is not immune,” Mr Koutsantonis said.
“My thoughts are with the affected workers, contractors and their families who are receiving the news.
“I have spoken directly with Arrium Mining’s chief executive and expressed my disappointment with the decision.
“Arrium has indicated it will honour all employee entitlements and look at opportunities for deployment of affected workers, where possible.”
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