Minerals sands miner Iluka Resources has made about 90 positions redundant following a company review that also flagged a significant impairment.
The Perth-based company, which recently acquired miner London-listed Sierra Rutile for $375 million, said the roles were made redundant as part of a strategy to remove cost from the business. The 90 positions were largely within support areas, according to Iluka.
Other key outcomes from the review included a non-cash impairment of $201 million, primarily relating to its Murray Basin operations in Victoria, and plans to reduce or close several exploration activities.
Iluka now expects to record a 2016 full-year net loss of between $220-230 million due to the impairment and other charges.
Managing director Tom O’Leary said the review aimed to generate shareholder value following the completion of the Sierra Rutile takeover.
“It’s against that backdrop that we’ve reviewed the likelihood of developing some of Iluka’s mineral deposits in Australia and the United States,” O’Leary said.
“It has necessitated the write-down of some assets, particularly in the Murray Basin, which have been idled for some time, and where the carrying value is not supported by planned activities.
“The review of Iluka’s rehabilitation provision has also necessitated an increase in the provision, particularly associated with Virginia, which is now regarded as a site to be permanently closed, rather than idled.”
O’Leary also commented on the restructuring of the company’s workforce.
“We have also commenced what we’ve described within Iluka as a sustainable business review to remove cost from the business, and to ensure we’re focused on the key priorities identified,” he continued.
“This has resulted in us making the difficult decision to make ~90 roles redundant, largely within support functions, and a number of exploration and other activities have ceased or expenditure has been reduced.”