Just under 40 jobs are set to go as international gold miner Gold Fields makes the move from owner-operated mining to a contracting model at its Agnew underground mine east of Kalgoorlie.
The company will retain its existing plant and equipment currently in use at the Agnew mine.
Gold Fields said the change in strategy was part of its efforts to stay competitive in a volatile gold market.
The move, however, will result in 37 jobs being slashed at the Agnew mine.
The changes will come into effect on July 23.
“Now that mining at Agnew is focused on one underground ore body - the high-grade Kim South Lode - it is no longer cost efficient to pursue owner-operator mining,” Gold Fields Australasia executive Vice President Richard Weston said.
“Agnew has a strong future. We are very pleased with the operation’s recent improvements in safety, costs and production.
“Our move to contractor mining will further assist us in our goal to generate sustainable cash returns from our operations.”