Rio Tinto Cuts WA Iron Ore Jobs

Written on the 21 November 2016 by Lana Reed

Mining giant Rio Tinto has confirmed it is cutting more jobs across its iron ore division in Western Australia.

Key points:

500 jobs are expected to be cut, many from Perth
Rio is blaming tough market conditions
Last week's iron ore price recovery is predicted to be temporary
The company will not confirm numbers, but it is understood 500 jobs, or 4 per cent of its workforce, will go.

The company told the ABC "rolling reductions" were underway, with jobs at head office in Perth to be targeted first.

Rio has released a one-line statement acknowledging tough conditions for iron ore.

"The market outlook remains challenging and we currently have 1,000 initiatives underway across our business to reduce costs, improve productivity and ensure we remain internationally competitive," it said.

Click HERE to read more.

Source: ABC

 

Iron ore magnate and new Western Australian of the year, Andrew Forrest, says the Australian iron ore industry is competitive despite rival company Rio Tinto reportedly axing up to 500 jobs.

The price of iron ore has been unexpectedly high in the past few months, hitting as much as $US78 a tonne in the last few weeks.

Rio Tinto, along with many analysts and forecasters, believes the market is overheated and a price correction is not too far away.

Many forecasters are tipping an average of $US45 to $US50 a tonne in 2017.

Mr Forrest said despite expanded supply coming on from mining giants like Vale in Brazil, Western Australian could weather the storm.

Click HERE to read more from Andrew Forrest.

Source:  ABC