MMG has cut more than 80 workers at its Golden Grove mine.
The miner yesterday reportedly announced that it was cutting workers at the site due to a restructure.
An MMG spokesperson, Sally Cox, told Australian Mining that "this was part of an ongoing review of operations".
The main reason behind the move is that "the site has now completed its open cut mine and will soon begin operations, so there is now less of a need for underground workers, which has resulted in the loss of around 80 workers," she said.
They went on to say that "there is also the secondary factor of operating all of our assets as effectively as possible, which means we will work towards reducing the cash costs of the mine."
She added that declining commodity prices also played a part in the decision, but that "really it is about restructuring our operations for the long term, and ensuring their sustainability".
Earlier this year MMG got the greenlight to begin mining ore at its Duglad River project, which is one of the world's largest zinc deposits.
At the time MMG spokesperson Bruce Loveday said "as much as a million tonnes year of zinc might be taken out of the market by 2015 or so, so the world will be looking for new supplies of zinc and Dugald River will be a very important contributor to that when it comes online.
“The Dugald River project, which has been around for awhile, will, when it’s in production, be producing around 20 000 tonnes a year of zinc and approximately 900 000 ounces of silver for approximately 23 years based on what we know so far, so it’s a very significant project."