03/09/2009 - 15:11

Iluka axes more WA jobs

03/09/2009 - 15:11

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Iluka Resources has cut a further 54 jobs at its Western Australian operations as the company moves to focus on its Victorian and South Australian projects.

Iluka Resources has cut a further 54 jobs at its Western Australian operations as the company moves to focus on its Victorian and South Australian projects.

The jobs cuts follow the completion of the second phase of a review of the company's WA operations, with 33 positions to be axed at the Narngulu mineral processing site, 12 at Eneabba and nine in the South West of the state.

A further 14 positions will be cut at the Murray Basin project in Victoria.

"Iluka will seek to mitigate the impact on the Iluka employees and contractors involved via redeployment to other operations where possible, employment transition/career planning advice, financial planning assistance and counseling," general manager western operations Steve Wickham said.

"Iluka is committed to the Mid West region and the $60 million dollar upgrade of the Mineral Separation Plant at Narngulu remains on target for completion in quarter one 2010. This facility will remain a cornerstone of Iluka's processing operations for many years."

The latest round of redundancies follow the axing of hundreds of people in WA earlier in the year on the back of weaker demand and the transition to Victoria and South Australia as a key source of Iluka's heavy mineral concentrate.

Investor relations manager Robert Porter told WA Business News that Iluka's WA workforce had shrunk by about a third while its total staff numbers had been reduced from around 1,400 recorded at the end of last year to about 1,000.

Iluka has closed two mines in Wagerup and Warrona in WA and idled kilns in the Mid West and South West regions, which when couple with the first round of redundancies, brought about a $16.1 million charge to the company for the 2009 financial year.

Mr Porter said the latest round of job cuts has not been quantified.

The restructure is expected to reflect lower cash production and corporate costs and place Iluka in a position with the ability to bring on additional production, if required, the company said.

Earlier in the year, the South Australian government gave Iluka the green light for its $420 million Jacinth-Ambrosia mineral sands project.


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