At least 300 jobs to be cut from regional SA mining operations linked to Whyalla Steelworks
GFG Alliance said they will be looking at redeployment opportunities for affected contract workers. (ABC News: Che Chorley)
In short:
At least 300 jobs are expected to be cut at a mining contractor in regional SA linked to the Whyalla Steelworks.
This comes a week after the steelworks resumed operations after shutting down for four months last year.
What's next?
GFG alliance said they will look at redeploying the affected contract staff.
At least 300 jobs are expected to be cut at a mining contractor in the Upper Spencer Gulf linked to Whyalla Steelworks owner, GFG Alliance.
The ABC understands management for mining contractor Golding met with workers on Wednesday to inform them that around 350 jobs will be lost.
Last year, GFG Alliance announced its plans to wind down its mining of hematite as it shifted its focus to mining magnetite ore in the future.
In September, Golding and another contractor SRG shed around 116 employees as part of the first phase of the wind-down of hematite mining.
It is understood Golding has decided to end part of its operations this week despite previous plans to continue until around the middle of the year.
More mining jobs connected to GFG Alliance are expected to be cut. (ABC News: Brant Cumming)
GFG Alliance confirmed on Wednesday evening that it will be placing its mining operations at Iron Knob into care and maintenance "in accordance with the currently approved regulatory plan under the Program for Environmental Protection and Rehabilitation".
"GFG's South Australian mining business is liaising with its major contract partners to plan and prepare for the transition to magnetite ore mining and the production of iron and steel through lower carbon production methods," a statement said.
Possible opportunities for affected contract workers
The company said they will be increasing the number of front line permanent roles and will possibly look at the redeployment of contract staff affected by the cuts.
“With the Whyalla Steelworks back in operation, we anticipate ramping up capacity and increasing the number of front line permanent GFG roles at the steelworks over the coming months," the statement said.
"Where possible, we will look to facilitate redeployment opportunities for affected contract workers.
“GFG will continue to work with all contract partners involved to carry on its mining and processing activities at other mine sites."
Resumption of steelmaking last week
This comes just a week after the Whyalla Steelworks resumed steelmaking after shutting down for four months while its blast furnace was repaired.
GFG Alliance executive chairman Sanjeev Gupta said it was the first piece of good news in months.
"I am pleased to see the first real sign of progress towards our goal to return the plant to full production and then back to black," he said.
"This is nothing less than a Herculean undertaking. Steel plants of this vintage don't do well being shut for four months."
The ABC has contacted Golding and its parent company NRW Holdings Group but has not yet received a comment.