Perilya mine dumps MacMahon contract

Broken Hill’s Perilya mine will end its shotcrete contract with MacMahon in a move set to lead to job losses at the site.

In an announcement yesterday the company said West Australian based firm Jetcrete would take over from June.

The contract change is expected to save the company $4 million.

Perilya managing director Paul Arndt would not comment on how many workers would be affected by the transfer, ABC reported.

"I think that's really a matter for the individual contractors to determine," Arndt said.

"These are not our employees, they're employees of the relevant contractors. So I'm sure Jetcrete will make its decisions on individual performance.

"The thing that I'd point out is that there will be a requirement, so people will be employed it'd just be that the employer would not be MacMahons, it will be Jetcrete."

Jetcrete general manager Tony Finn was also tight lipped on any potential job losses but welcomed current employees to apply for the positions.

"It's an open process and they'll go through the normal selection process of our company which is whether they can do the job, the medicals and the other site access clearance information that we require, Finn said.

Earlier this year workers at Perilya rejected a pay rise freeze proposed by management.

Arndt said the move would have saved the miner $1.8 million, and blamed the negative vote for putting pressure on the operation.

The CFMEU’s Greg Braes said the news was a “sad day for everyone involved”.

Braes said "the union can't get them to change their business", but hopes workers are prioritised during the contract changeover.

"We just need to make sure that everything is done properly and above board and hopefully a lot of these lads can pick up work with the new company," he said.

In December Perilya was purchased by its major Chinese investor in a deal worth $269.3 million.

China’s No. 3 zinc producer, Zhongjin Lingnan, already had a 53 per cent stake in the company and announced plans to buy the rest of the stock for 35 cents a share.

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