West Australian iron ore miner Gindalbie Metals has flagged the need to cut jobs at its head office as part of a cost reduction at the Karara Project.
The company’s boss also stepped down and was transferred to Gindalbie subsidiary Karara Mining in order to take charge of the project.
The Karara Mining project is a joint venture between AnSteel Group, one of China’s biggest steel makers and Gindalbie.
The West Australian reports six to eight positions have been cut at the Gindalbie office in recent weeks and more are expected to come in the areas of finance, secretarial and administration.
The paper also reports Gindalbie is eyeing options to move its exploration team to Karara and use contractors to conduct work on its own tenements including the Lodestone Magnetite project.
Acting managing director Michael O'Neill said while Gindalbie was committed to the success of the Karara project, technical workers should be employed by Karara Mining.
Gindalbie said Karara was now capable of producing magnetite concentrate at about 75 per cent of its 8.8 million tonne name- plate capacity, with 911,000 tonnes shipped during the March quarter.
It said $126.6 million would be spent in 2014 upgrading the operation's processing plant in order to de-bottleneck and ramp up production.
It also found certain zones of the magnetite orebody was harder and more abrasive than anticipated, impacting crushing circuit performance and capacity, with technical reviews underway.