From the ABC:
Another iron ore company in Western Australia’s north has fallen victim to the plunging iron ore price, shedding dozens of workers in a bid to stabilise profits.
Kimberley Metals Group (KMG), which owns and operates the Ridges Iron Ore mine south of Kununurra, has announced it will lay off 40 workers.
The mine is estimated to contain 67 million tonnes of ore, with KMG previously exporting in excess of 150,000 tonnes per month of iron ore fines to the markets in China.
Following a drop in the iron ore price by 30 per cent, the company says it will reduce production by a quarter and focus on a higher-grade output.
Kimberley Metals chief executive Glenn Jardine said the laid off workers will include truck drivers who deliver ore to Wyndham Port.
“It’s always unfortunate when people have to move on from their jobs,” he said.
“But it’s just absolutely necessary with the current iron ore price environment that we get this new mine plan implemented, and see increases in productivity and reductions in cost.”
This is another of those little firms that has literally been scraping up the dirt and trucking it out.
