Workers at Gina Rinehart’s $10 billion Roy Hill mine have been asked to take a pay cut.
Roy Hill chief executive Barry Fitzgerald said the measure would mean people would be able to retain their jobs.
Under the plan, salaries will be cut by 5-10 per cent, with company executives and management the hardest hit.
For 50 per cent of the Roy Hill workforce in the lower remuneration band, there will be no salary changes.
"Retaining as many jobs as we can for our existing employees was one of the outcomes we were looking for from our review of rosters and remuneration," Fitzgerald said.
"We felt it was more important for our people to retain their job rather than pursue workforce reductions as a cost saving strategy in response to market conditions."
Fitzgerald said the mining boom had increased salaries to levels unsustainable in the current market.
“Reducing base salaries for existing and future employees is a prudent measure in today's market, as it establishes a remuneration structure which supports us to remain a competitive, long-term business,” he said.
The Roy Hill project includes a new 55 million tonne per annum iron ore mine, 344 kilometres of railway and a new port at Port Hedland.
The $10 billion mine undertook the largest funding package for any project worldwide, securing $4 billion in funding from export credit agencies and an additional $3 billion from commercial banks.
The project is now more than 85 per cent complete, with first export slated for September.