BC Iron cuts jobs

BC Iron has cut jobs in order to deal with the falling price of iron ore.

The company said due to the current challenging environment it was forced to cull its workforce at Nullagine mine and its head office.

BC Iron managing director Morgan Ball said 10 to 15 per cent of the workforce had been cut, AFR reported.

“In relation to people, we are a small operation, we only have 70 direct employees and approximately 200 contractors. But unfortunately in light of the market conditions, with our direct employees, we have had to reduce that in the order of 10 to 15 per cent,” Ball said.

“Contractors numbers have been reduced where appropriate. I know they have revisited their manning and equipment utilisation to assist the operation.”

The company lowered its all-in-cash cost estimates for the rest of the full year to between $47 and $51 per wet metric tonne.

It also reduced full year capital expenditure for the Nullagine joint venture, with its share now estimated at $13 million to $16 million.

This represents an overall reduction of $10 million compared to the original guidance range for BC’s share of $23-26 million.

The company confirmed sales of guidance of the mine remains unchanged at 5.2-5.6 million wet metric tonnes.

“We have had to make a number of tough business decisions recently, but our strong focus on reducing operating costs and capital expenditure is a critical part of managing our business in the current iron ore price environment,” Ball said.

Last month the company announced three non-executive directors resigned with the remaining directors taking a 10 per cent pay cut.

Iron ore is trading at close to five-year lows, forcing mid-tier miners to reassess their operating costs.

The move by BC follows moves by Atlas Iron and Mount Gibson to shed jobs.

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