Rinehart’s Hancock weighs $3.3 billion iron ore mine project
Hancock acquired a 51% interest in the Mt Bevan project from Legacy Iron Ore Ltd. and Hawthorn Resources.
Australia’s mining industry hasn’t rest on its laurels; it has been harsh hit by slumping commodity prices, mainly coal.
Australia’s mining industry, once the country’s second-largest jobs generator, has become just one of many employers in the nation, data released Thursday shows.
According to the Bureau of Statistics, the sector added 4,200 jobs in the year to May, dramatically less than the 61,000 workers it hired in the same period ending in May 2012.
Having done their best to ride out a two-year slump in global coal prices, Aussies are shedding thousands of jobs as they shelve high-cost mines, sell non-core assets and drive efficiencies across their operations.
Only last week BHP Billiton (ASX:BHP) terminated a $338 million (A$360m) contract with contractor Downer EDI at its Goonyella Riverside mine one of Australia’s biggest coal mines. The decision will leave 427 workers out of jobs.
BHP, which through its partnership with Mitsubishi Corp. is the world’s largest coking-coal exporter, has also closed several mines recently, including its Norwich Park and Gregory operations in eastern Australia because of weak prices.
Vale (NYSE:VALE) and Glencore (LON:GLEN) are axing about 550 jobs each at mines in the Hunter Valley and Queensland — the two big coal producing regions, where about 50,000 people work in the industry.
In fact, 10% of Queensland-based operations are said to be in a “very precarious position”, particularly in lower-grade coking coal and thermal coal, Resources Council president Michael Roche told SMH last month.
The second largest mining company, Rio Tinto (LON:RIO) is also planning to cut cost for about $1 billion by the end of the year from its energy division.
Overall, Australia’s mining industry lost 6,600 workers in the three months to May. In contrast retail gained 16,600, tourism 26,100 and health and aged care 35,200, the Bureau of Statistics report shows.
5 Comments
Bruce
that Kangaroo is just sleeping…..watch this space….
Tinonamatako
Companies are now starting to realise the urgent need and requirement to restructure and return to profitability. The biggest challenge is to remain focused and Australian miners have not been doing so. There is a lot of duplication of positions, bureaucracy and lack of knowledge in a lot of areas where there is a potential to save millions. I cannot imagine most of these Iron Ore miners are starting to realise it now and when its too late that they dont need so much resources to be able to produce profitably.The industry is boxed now and we need people to think out of that box! unfortunately the waste has been cushioned by high commodity prices for yes but its all coming to an end now.
John Roberts
Leightons Solomon now laying 162 of us off. I personally am devastated as I thought i had a future there
Rob Van Uten
Australia competes on the world stage and if the business model it isn’t profitable ;then something has got to give.
Back to school …or …resort to crime…Life is all about choices.
Andy D
Since the Gillard slowdown there has been (until March this year) over 156,000 people lose their jobs in the industry….. yet Australia has issued 153,000 visas in that same time !!! WTF. My mate was laid off last week and his job has already been given to a worker from JoBurg here on a visa. That cause it’s easier for the companies industrially if there are further contractions. So old mate will lose his house and it will get picked up by some foreigner taking an Aussie job. We should not let anyone develop our resources if Australians are not the priority for employment – just the same as any other country, nothing less!!! Jobs for Australians first!!!!!!!!!