Arrium has announced that it will make 30 redundancies and will ask mining employees to take a temporary pay cut of 10 per cent.
The ABC reports that there has been no vote on the pay cut, and there was no detail on where the job cuts would occur.
Arrium announced last week that it made a $235.8 million loss last year after tax, and is considering shutting its loss-making Whyalla steelworks.
“The reality is that the business is not economic and it needs to reset its cost base to be viable," an unnamed spokesperson told the ABC, adding that the loaded cost per tonne of iron ore needed to come down by $10.
"This [pay cut] concession is an interim measure and employees' pay will return to their previous level once the business can afford to do so.
"This is about every employee, from senior management to the shop floor, contributing to securing the future of the mining business.
Arrium – formerly OneSteel – operates iron ore mines at Iron Knob, Iron Baron and South Middleback Ranges, and makes steel at Whyalla, Melbourne and Sydney.
The company’s net debt is reportedly over $2 billion.