Rinehart’s Roy Hill drops senior staff

Mining magnate Gina Rinehart has cut senior executives from her Roy Hill iron ore project.

The mine has had a shadow over it since earlier this month after it emerged the operation was facing a billion dollar blow out in cost.

It reportedly will not have all its funding secured by the start of 2013 as planned, and other work delays may be costing as much as $100 million.

Earlier this year the cost of Roy Hill ballooned from $7 billion to $9.5 billion, and while analysts expect a recovery, the iron ore price remains at 2009 lows.

This has sent the mine scrambling to find funding.

Following this news the mine announced that it would be shedding contractors.

Although according to the miner these workers had simply reached the end of their contract, and plans were in place to let them go, and that no internal staff were to be cut.

However despite Roy Hill chief Barry Fitzgerald's comments that there would be no internal cuts, around 10% of the company's workforce was laid off last week, the West reports.

These layoffs included senior staff, such as Viv Roberts, Roy Hill's general manager of operations, and its communications manager Adrian Firth.

A number of those staff who have been cut are also believed to be workers who only joined the company a few weeks ago.

The miner has also been forced to defer its rail construction as it attempts to raise capital.

Despite these layoffs, the miner will still be on the hunt for construction workers and debt relief solutions.

It is understood Rinehart is currently in negotiations over a $7 billion debt package.

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