Mining rout claims another 170 jobs
The mining industry has shed another 170 jobs as Dampier Salt, Atlas Iron and Macmahon Holdings all cut workers in response to the commodity price crisis gripping the sector.
_WestBusiness _understands Dampier Salt and Atlas Iron have put off about 10 per cent of their workforces, while Macmahon cut 10 per cent of Perth-based staff.
Rio Tinto's Dampier Salt business is believed to have laid off up to 50 of the 450 workers employed across its Port Hedland, Dampier and Carnarvon operations, though a spokeswoman would not confirm exact numbers.
"Dampier Salt has reduced the size of its organisation in response to challenging market conditions," she said.
Atlas Iron yesterday told staff it would shed 80 positions from its 800-strong workforce as an "inevitable result of the sharp falls in the iron ore price".
Managing director Ken Brinsden said the redundancies were part of the company's ongoing cost-cutting program, which is seeking to pull between $65 million and $90 million from its annual operating costs by the end of the financial year.
"It's imperative Atlas maintains a competitive cost base in light of current market conditions," Mr Brinsden said.
"We regret to see many good people leave our business. However, these changes are necessary and will help ensure our longer term sustainability."
Earlier this week, Mr Brinsden agreed to take a 15 per cent pay cut as a cost-reduction measure.
Atlas directors Mark Hancock and Geoff Simpson also stepped down from the board to save costs, though Mr Hancock remains in his executive role as Atlas' chief commercial officer.
The company's six remaining directors also agreed to a 15 per cent remuneration cut.
The industry-wide slump has also put pressure on mining services providers, with contractor Macmahon shedding between 40 and 45 staff.
The jobs were lost across Macmahon's West Perth head office and Perth Airport workshop, including people in administration, accounting, finance and IT.
"In order to remain competitive in the current market, Macmahon is continually reviewing its operations to ensure it is operating as efficiently as possible," a spokesman said.
Macmahon last month downgraded its annual revenue forecast to between $750 million and $850 million because of a suspended contract in Mongolia. It turned over $1 billion in 2013-13.
Atlas Iron shares closed down 1¢ to 16¢ yesterday, with Macmahon remaining unchanged at 7.5¢ and Rio up $1.20 to $59.18.
'These changes are necessary and will help ensure our longer term sustainability.""Atlas Iron managing director *Ken Brinsden *