Mining giant Rio Tinto says it will cut Australian jobs and scale back production
By Ian Armitage
Rio Tinto, the world’s third-largest mining company, plans to slow expansion of the Yarwun refinery and the production of bauxite, the main mineral used to produce aluminium.
It will cut about 700 permanent and contract jobs, as a result.
This is a direct response to what Rio Tinto calls “a slump” in commodities prices and demand amid the financial crisis.
“At current prices around 70 percent of the industry is currently operating at a financial loss,” the firm said.
The cuts are in addition to the 14,000 in job losses that Rio Tinto announced in January.
Australia’s mining sector has been hit hard by the global economic slowdown, while slowing growth from China and other importers of raw materials has hit commodity producers such as Rio Tinto hard.
Almost 600 roles will be cut at its plants near Gladstone, and 100 jobs at its Cape York bauxite refinery, both based in Queensland.