Fortescue Metals, Evolution join list of miners cutting jobs
About 100 contractors employed by engineering firm Downer EDI will cease working at Fortescue's Christmas Creek iron ore operation in Western Australia over the next few days, after changes to processing equipment on site.
Fortescue has recently been upgrading its processing equipment at Christmas Creek, and the improvements mean that certain other purification methods are no longer required.
A spokesman from Downer EDI said about 100 of the 1200 contractors on site will be made redundant.
A spokesman for Fortescue said the changes were linked to the recent processing upgrades.
"Downer and Fortescue are working together to achieve maximum operational efficiency from full production and as a result there will be a reduction in the number of personnel required by Downer," he said.
Like most mining services companies, Downer has been enduring a tough time recently as mining companies scale back their workloads and try to reset contracts at lower prices that reflect the current climate.
BHP Billiton is understood to also be talking with its Pilbara iron ore contractors in a bid to bring down costs, and has already made numerous contractor changes on its coal operations in eastern Australia.
The gold sector is also struggling under a recent price slump, and on Thursday Australia's fourth biggest listed gold producer revealed a host of changes to reflect the more austere business environment.
Like many other miners, Evolution said it had cut back mining of high-cost ounces, had sought to optimise its mining fleet and was reviewing all spending.
It also said it had reduced the number of shifts worked at its Edna May mine, made some workers from its Pajingo mine redundant, and was also clamping down on its number of white-collar workers. Evolution's announcements were not all bad, with the company confirming it had met gold production forecasts.
After suffered steep declines between April and June, many ASX-listed gold producers including Newcrest Mining have recovered strongly in recent days.
Frequently Asked Questions about this Article…
The article says job cuts are driven by operational changes and a tougher market: Fortescue upgraded processing equipment at its Christmas Creek iron ore site which removed the need for some purification work, and many mining services firms like Downer EDI are feeling pressure as miners scale back workloads and renegotiate contracts at lower prices.
About 100 contractors employed by Downer EDI at Fortescue's Christmas Creek mine will cease working there — roughly 100 of the 1,200 contractors on site are expected to be made redundant following processing upgrades.
Fortescue upgraded its processing equipment at Christmas Creek, and those improvements meant certain purification methods were no longer required, reducing the number of personnel Downer needed to support full production efficiently.
Evolution said it cut back mining of high‑cost ounces, optimised its mining fleet, reviewed all spending, reduced the number of shifts at its Edna May mine, made some workers at Pajingo redundant, and trimmed white‑collar staff — while confirming it met its gold production forecasts.
According to the article, Downer and similar mining services firms are under pressure as miners scale back workloads and try to reset contracts at lower prices, which reduces demand for contractor labour and puts margins under strain.
Yes — BHP Billiton is reported to be in talks with Pilbara iron ore contractors to bring down costs and has already made numerous contractor changes on its coal operations in eastern Australia.
The gold sector has been hit by a recent price slump, prompting miners like Evolution to cut costs, but the article notes many ASX‑listed gold producers, including Newcrest Mining, recovered strongly after suffering steep declines between April and June.
The article suggests the industry is responding to weaker prices and higher cost pressure by upgrading equipment, cutting high‑cost production and reducing headcount or contractor roles. For investors, that highlights sector cost‑management efforts and mixed operational outcomes — some companies are trimming staff while others (like Evolution) still met production forecasts.
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