Rio Tinto finally executes job-cuts at Weipa bauxite mine operations

Mining giant Rio Tinto is finally laying off more than 40 staff at its Weipa bauxite operations. The staff are spread across the East Weipa and And­oom ventures.

Two weeks ago, Rio Tinto flagged job cuts at Weipa. It wrote to all personnel, ­warning them of job losses as part of a review to cut costs ­because of falling aluminium prices and competition. It is understood that no voluntary red­undancies were called for, instead the company restructured operations to identify the roles it could do without. The staff who have lost their jobs include long-term as well as newer employees.

A Rio Tinto spokesman said: “We are working to red­uce costs across Rio Tinto in a challenging environment and to ensure our Weipa bauxite operations remain globally competitive. Our focus is on providing all the support we reasonably can to the people who are affected.”

The job cuts – with no more planned at this stage – do not, however, impact on the new $2.6 billion Amrun mine expansion. It is in the construction stage. When it comes online in 2019, workers at the East Weipa project, which is winding down, will transfer over. The Andoom mine has about another 15 years of life left.

Rio employs 1400 staff and contractors at Weipa. Up to 1100 construction workers will be hired at Amrun during the peak over three years.

Weipa operations general manager Gareth Manderson told staff the company needed to transform its business during 2016 “to build resilience ­irrespective of market cycle”.

“The work we have completed together over the past few years to improve our safety performance, productivity and cost position has positioned us well,” he said. “However, global market conditions, increased competitor activity and lower prices (particularly alumina) requires that we continue this work at an increased pace.”

The company has frozen new and replacement roles for the time being.

“In addition, the management team has commenced a detailed review of work programs, organisational structures and budgets,” Mr Manderson said. “This may result in changes for individuals and teams, and raises the possibility that some of our colleagues will leave Rio Tinto Weipa operations,” he added.