Rio job cuts loom

PERTH (miningweekly.com) – Mining giant Rio Tinto has confirmed planned staff reductions, but shied away from giving firm numbers.

Reports emerged on Monday that the company would cut about 500 jobs, or 4% of its workforce, across its Pilbara iron-ore assets. The ABC reported that the job cuts would start at the company’s head office in Perth.

"The market outlook remains challenging and we currently have 1 000 initiatives under way across our business to reduce costs, improve productivity and ensure we remain internationally competitive,” a spokesperson for Rio told Mining Weekly Online.

“Unfortunately, there will be some role reductions that will result in people leaving our business. This is not related to our automation programme. We are trying to complete this work as quickly as we can and we are supporting our employees and their families.”

Rio said last week it would suspend iron-ore production at its Hope Downs 4 mine over Christmas for a two-week period, with the 440 staff directed to take leave. The interruption to production will mark the first time mining has been suspended since the 2008 global financial crisis.