Around a thousand miners are facing the uncertain future after a major Australian mining company announced that it would be shutting down its operations in the Goldfields. Mineral Resources, which is listed on the ASX, said that the Yilgarn mine would be financially unviable after this year.
The company operates in three regions in Western Australia: Ashburton, Pilbara, and Yilgarn.
It noted that the lifespan of the mine sites near the hub had decreased and the resources required for new projects had increased.
The company noted that it would be scaling back its operations at the Yilgarn mine, which is about 350 kilometers northwest of Perth.
It will stop its shipments on December 31. Although the mine’s closure will affect around a thousand workers, MinRes noted that they would be given priority in job opportunities and training.
Chris Ellison, the company’s managing director, said that the decision to reduce its operations at the Yilgarn mine was difficult but necessary.
He noted that the company had invested a lot in the mine to extend its life.
He noted that the company would be redeploying many of its workers at other projects.
In addition, it has over 800 vacancies in Western Australia. Following the announcement, the shares of MinRes fell by around 1.3 percent.
Since 2011, the company has been operating in the region.
In 2018, it partnered with the Western Australia government to save hundreds of jobs at the Koolyanobbing mine.
The project was at risk after Cliffs Natural Resources decided to stop its operations. Mr Ellison noted that by the end of this year, the company would have spent over $4.2 billion on the Yilgarn operation.
This year has been a challenging one for Western Australia’s mining industry.
In February, it was revealed that BHP might mothball its entire nickel division in the state, which would result in around 3,000 job losses.