Kambalda mine hit by Gold Fields cuts
WA's mining workforce has suffered another blow, with South Africa's Gold Fields laying off 56 workers at its St Ives mine near Kambalda as part of a global review of production costs.
Sources suggest further cuts may be coming at the mine, one of the highest cost producers in Gold Fields' global portfolio in the March quarter.
About 1200 workers were employed at St Ives two years ago. That figure is now closer to 900, following earlier job losses.
Despite a recent resurgence in the gold price, industry sources suggest more jobs in the sector are likely to go in coming months as mine managers finalise their budgets for the new financial year.
The latest job losses in the mining sector come as BHP Billiton considers deep cuts for its own workforce, on top of the 500-plus positions already culled over the past few months.
The cuts are in response to recommendations from consultants McKinsey & Company that BHP needs to cut up to 20 per cent of its 16,000 strong WA iron ore workforce and reduce ongoing costs in the division by $600 million to $900 million a year.
BHP yesterday moved to calm employee worries over the mooted cuts, telling staff no final decisions had been made on the outcomes of the McKinsey review.
It is telling staff not all recommendations may be implemented straight away.
Premier Colin Barnett also played down concerns of mass layoffs at BHP, saying he believed looming job losses would be "in the hundreds, not the thousands".
