Atlas Iron cut jobs

Atlas Iron workers are the latest victim of tumbling iron ore prices, with hundreds made redundant this week.

According to a source close to the issue, 40 to 70 permanent roles have been affected.

A worker told Australian Mining he was called yesterday morning and told not to bother showing up for work, and was redundant – effective immediately.

Meanwhile BGC Contracting and MACA staff have also reportedly been cut, after having been informed of the moves earlier this week.

When approached, an Atlas Iron spokesperson told Australian Mining it could not comment on “internal management issues”.

BGC Contracting and MACA were both unavailable for comment.

Atlas Iron operates Pardoo, Wodinga, Mt Dove and Abydos iron mines in the Pilbara.

In June, the miner revealed that it was being paid discount rates for its low grade ore, which contains 58 per cent Fe.

On Monday iron ore prices fell below $US80 for the first time five years, adding more pressure to lower grade producers.

The cuts come as belt-tightening measures across WA’s iron ore sector start to take affect, with BHP cutting more than 500 jobs across WA.

The pain seems to have set in for some iron ore miners as analysts predict the price is unlikely to recover any time soon.

 A senior executive from China’s steel industry warned not to expect demand from the country to pick up.

Xinchuang said steel production in the country would not grow beyond 900 million tonnes.

He said iron ore prices would sit at around $US80 a tonne for a long period because of the volume being produced.

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