From AAP:
As Rio Tinto prepares to slash about 500 staff in Western Australia, Premier Colin Barnett has urged the mining giant to maintain a solid workforce amid improved iron ore prices.
While the company has confirmed there will be staff cuts, it has declined to say how many, but it is believed about 130 Perth-based roles will go along with about 350 jobs in its WA iron ore business.
Speaking with reporters on Monday, Mr Barnett urged the mining giant to ride out the tough times.
‘Companies have got a responsibility to maintain workforce,’ he said.
‘Only two years ago, they were all saying they didn’t have enough workers. The world hasn’t changed that much.
‘Let’s face it – iron ore prices are pretty good.’
…Meanwhile, WA opposition leader Mark McGowan says the contentious iron ore tax hike proposed by state Nationals leader Brendon Grylls is spooking the industry.
‘Mr Grylls is just attacking the mining industry day after day and that destroys confidence,’ Mr McGowan said.
Barnett has no control what RIO does with its workers. What he does have control over is the tax rates he applies to RIO yet on that front he refuses increases. Insisting instead they keep workers on that they do not need is bizarre.
Of course he is responding to Labor’s politicised drivel. The big miners are currently operating at 200% plus margins on Pilbara iron ore. This is a publicly owned, non-renewing resource. On any measure, anywhere, in any formulation of commodity economics outside of a Banana Republic, WA and Australian taxpayers are not getting a fair share of the return and if higher royalties were applied sensibly then they will have zero impact on jobs or investment. An example is Norway which taxes its oil industry at 78% of profits without disrupting anything.
How this even passes for debate is the question.
