The latest Mount Gibson Iron quarterly report has revealed fresh evidence that staff at the iron ore producer’s loading facilities would be facing up to 20 job losses.
In its report for the period ending December 31st, the company –which operates the Extension Hill site 200km south-east of Geraldton –announced two-and-one rosters would become the norm across all of its Mid-West roles.
Mount Gibson closed December 2015 with $345 million in cash and equivalents, up from $330 million at the end of September as a result of a successful shipping quarter from Geraldton Port totalling one million wet metric tonnes.
According to Mount Gibson chief executive Jim Beyer, the “extreme market volatility” demanded the company should act swiftly to preserve value for shareholders and protect the business.
“We have acted to implement operational changes at Extension Hill to provide sales flexibility while controlling unit costs,” Beyer said.
“This positions us to be able to preserve value in a low iron ore price environment as we look to the planned development of the Iron Hill deposit.”
If iron ore prices continue to slump, Beyer says the company could be forced to forego the development of the deposit.
With Extension Hill expected to be near-on depleted by early next year, the Iron Hill deposit is scheduled to begin mining in 2017, subject to regulatory approvals.