From The Australian:
MOUNT Gibson Iron will lay off about 270 workers, slow mining and cut pay for senior managers to curb costs and help it ride out a fall in commodity prices.
“The immediate market outlook remains uncertain,” chief executive Jim Beyer said today in a statement to the Australian Securities Exchange. “The only prudent course of action is to implement comprehensive measures that control costs and enable our operations to remain cash positive.”
And quite sensible too.
Update: larger competitor Atlas Iron (AGO) has also joined the party announcing a 6% rise in quarterly iron ore shipments, a reduction in operating costs to $A46-$50 tons, alongside 27 job cuts. The company also says its on target to expand its current shipping from 6m tpa to 12m tpa by December 2013 – now is that sensible?
