Rio sacks 40 workers at coalmine
Rio's permission to expand the Mt Thorley Warkworth mine was overturned in the NSW Land and Environment Court last week after residents from the town of Bulga succeeded in a long campaign against the project.
Rio had planned to expand the mine to the extent that open-cut operations came within 2.6 kilometres of Bulga and consumed land that advocates say was promised for conservation.
Rio announced on Monday that it would appeal the decision in the Supreme Court and said the result would prove crucial to the jobs of 1300 people.
Announcement of the appeal coincided with about 40 job losses from the mine on Monday.
Rio spokesman Darren Yeates stressed those job losses were part of a broader cost-cutting program, but were a reminder of how precarious the mine's future was under current conditions.
"Regrettably, 40 employees and contractors are either having their position made redundant or being let go from the site today, as part of this ongoing work," he said.
Frequently Asked Questions about this Article…
Rio Tinto cut about 40 employees and contract workers from the Mt Thorley Warkworth Hunter Valley coalmine after a NSW Land and Environment Court decision overturned its permission to expand the mine. The company announced it would appeal the ruling in the Supreme Court.
The layoffs coincided with a court ruling that overturned Rio's expansion approval for the Mt Thorley Warkworth mine. Rio said the roughly 40 job losses were part of a broader cost-cutting program and highlighted how precarious the mine's future is under current conditions.
The NSW Land and Environment Court overturned Rio Tinto's permission to expand the Mt Thorley Warkworth mine after residents from the town of Bulga successfully opposed the project in a long campaign.
Rio's planned expansion would have extended open-cut operations to within 2.6 kilometres of Bulga and consumed land that advocates say was promised for conservation.
Rio Tinto said the court result would prove crucial to the jobs of about 1,300 people associated with the operation.
Yes. Rio announced it will appeal the NSW Land and Environment Court decision in the Supreme Court.
A Rio spokesman, Darren Yeates, said the 40 employees and contractors were either being made redundant or let go as part of an ongoing cost-cutting program, and he described the job losses as a reminder of how precarious the mine's future is under current conditions.
Everyday investors should note that legal decisions and local community opposition can materially affect mining projects, operations and jobs. In this case, a court reversal prompted layoffs, and Rio Tinto is appealing the decision, highlighting regulatory and operational risks to the mine and its workforce.
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