Arrium to shed 120 NSW jobs

Steel and mining group Arrium (ARI) is to cut 120 jobs as part of a restructure at its Waratah division.

Arrium said it would reduce its workforce at Waratah's base in the NSW city of Newcastle by 20% by June 14.

Arrium's Waratah steelmaking business supplies fencing products to farmers and makes train wheels.

The company said there had been a change in production requirements from the Waratah division, including lower demand for rail wheels.

Arrium expects to save $14 million a year from the restructure, which will cost it $15 million in fiscal 2014.

The jobs cuts come as the miner reported total shipments of 3.03Mt for the March quarter, a 54% increase from the previously corresponding period.

This quarter’s increase pushed the miner to record year-to-date shipments of 9.3Mt, a 73% increase from the 5.4Mt posted at the same time last year.

Arrium total ore mined came to 2.659Mt, a slight increase from the 2.538Mt mined in the previously corresponding period.