‘Prudent but difficult decision’: 1000 jobs cut amid Mining Resources Yilgarn Mining Hub closure

Roughly 1000 workers face an uncertain future as a major resources company closes a Western Australian mining hub.

Approximately 1000 miners are facing an uncertain future as a major Australian resources company closes a Western Australian mining hub in the Goldfields region.

The ASX 50-listed company Mineral Resources (MinRes) informed the market on Wednesday that the 13-year-old mining operations at Yilgarn would cease to be “financially viable” after this year.

MinRes is Australia’s fifth-largest iron ore producer with operations in three iron ore hubs across Western Australia in Yilgarn, the Pilbara, and Ashburton regions.

MinRes cited the diminishing lifespan of the five mine sites connected to the hub and the substantial resources required to develop new operations in the vicinity.

Mineral Resources (MinRes) is closing its 13-year-old mining operations at Yilgarn, impacting around 1000 workers.

Consequently, the $12 billion company has decided to scale back operations at Yilgarn, located about 350 kilometres northwest of Perth, with the final shipment scheduled for December 31.

The closure will impact around 1000 workers, but MinRes has assured that these employees will be given priority for open positions and retraining opportunities.

“This prudent but difficult decision was not taken lightly and follows years of investment to extend the life of our operations in the Yilgarn,” MinRes Managing Director Chris Ellison said in a statement to the ASX on Wednesday.

He added, “With our investment across Western Australia, we have almost 800 vacancies and will redeploy as many of our people as possible to other MinRes operations, including to our low-cost, long-life Onslow Iron project.”

Following the announcement, MinRes shares fell by 1.3 per cent, closing at $60.57 on Wednesday, a notable drop from a one-year high of $79.49 in May.

MinRes Managing Director Chris Ellison assured affected employees will be given priority for open positions and retraining opportunities.

MinRes has a long history in the region, starting shipments from Carina in 2011.

In 2018, in collaboration with the WA government, the company saved hundreds of local jobs at Koolyanobbing, which were at risk following the exit of Cliffs Natural Resources.

“By the end of this year, we will have operated Koolyanobbing for six and a half years, exported almost 45 million tonnes via the Port of Esperance, and spent $4.2 billion running our Yilgarn operation, exceeding our commitments,” Mr Ellison noted.

The mining sector in Western Australia has faced significant challenges this year.

In February, BHP hinted at potentially mothballing its entire WA nickel division jeopardising around 3000 jobs.

This decision was coupled with a $9.85 billion impairment charge in its half-year accounts, driven by the falling value of its Nickel West division.

The downturn in the nickel market, exacerbated by a surge in cheap Indonesian exports, has led to multiple mine closures in WA.

Panoramic Resources has sunk into administration, Andrew Forrest’s Wyloo Metals has shuttered its newly acquired underground nickel operation from Mincor Resources, and construction at IGO’s Cosmos nickel project has halted.