Independence axes 28 Long jobs

Diversified miner Independence Group has slashed its workforce by 28 positions at its Long Operation in Kambalda, as it implements a number of cost-saving changes to its mining plan in response to the depressed nickel market.

The gold, copper and nickel miner, which reported a 58 per cent boost in full-year net profit to $77 million last month, will focus on longhole stoping at the Long mine, supported by twin boom jumbo development, while other mining methods will be discontinued from today.

The revised mining plan will reduce operating costs at Long by between 11 and 13 per cent.

“While the Long Operation is highly efficient operationally, it requires a higher nickel price environment to recommence the discontinued mining methods,” the company said in a statement.

Independence’s targeted nickel production range has been reduced by 1,000 tonnes, to between 8,500 and 9,000t.

Exploration spending has also been cut from between $18 million and $20 million to between $13 million and $15 million.

“We deeply regret the impact that these changes will have on our people and it is a decision that has not been taken lightly,” managing director Peter Bradford said.

“Independence remains committed to the Kambalda community and the broader Goldfields community.

“These steps were necessary in the current environment to ensure Independence continues to generate sustainable margins and returns on capital from the Long Operation,” he said.

Independence remains focused at its Tropicana gold mine near Laverton and at its Jaguar gold mine near Leonora, and is in the middle of acquiring local miner Sirius Resources.

Shares in Independence were 1.6 per cent lower to $3.05 each at 10am.