Newmont cuts workers

Newmont has announced that it will begin cutting workers today at its operations around the world, reducing its Australian workforce by 50 positions.

In a statement this morning, Newmont's Waihi Gold said job cuts at its mine "are part of a wider package of job cuts across all Newmont sites globally.

"Staff at Newmont's four mines and regional headquarters in Australia have also been notified this week of likely redundancies."

Speaking to Australian Mining, Newmont Asia Pacific spokesperson Sharon Iannello said the Australian workforce has been reduced by 50 positions following a recent cost review.

"While redundancies were offset by reductions in budgeted vacant positions and natural attrition, there have been job losses largely in support service areas from the Subiaco regional office and in Boddington," she said.

The company is today beginning the process of consulting with staff and contractors about changes in the workforce, which are likely to include a number of redundancies.

However it did state that "where possible the company will be seeking to offer changes of jobs rather than redundancies, and some staff are in the process of being offered jobs at other Newmont sites globally."

At its Waihai Gold site the miner expects to cut around 20 staff and contractors, as well as significantly scaling back its exploration program.

Speaking this morning, Newmont Waihi Gold general manager of operations, Glen Grindlay said "the decision to reduce our workforce is not one that we take lightly and we will be working closely with all staff to help them through this difficult period.

"But the reality is that over the past 5 years our operational costs such as materials and labour have risen far faster than gold prices and that has had a significant impact on the company – both globally as well as here in Waihi.

"We need to start reducing our costs now in order to keep the mine viable".

Speaking to Newmont's New Zealand spokesperson Sefton Darby, he told Australian Mining that "Newmont, globally, has been very open in it cutting costs over this past month, we understand this doesn't make it easier in dealing with individual redundancies, but the reality is we're facing the same pressures as other miners to stay viable".

Iannello added that "like any business, we have a responsibility to continually optimise our operations in the face of changing economic conditions. We are committed to treating all of our employees and contractors with fairness and respect throughout the process".

In Australia Newmont operates the Boddington gold mine, Tanami gold mine, Jundee mine, and operates a number of operations in Kalgoorlie, including the Super Pit.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.