PERTH (miningweekly.com) – Iron-ore miner Atlas Iron on Friday announced that it would reduce the staff numbers at its Perth head office and its Pilbara operations by 80, as part of efforts to cut back on costs.
Some 30 roles would be made redundant at the miner’s Pilbara operations, while a further 50 staff would be cut from the Perth office. The payroll reduction was expected to generate a yearly cost savings of around A$15-million.
Atlas told shareholders that the company would incur a one-off restructuring cost of around A$3.5-million.
“The job losses were an inevitable result of the sharp falls in the iron-ore price and ensure that Atlas maintains a competitive cost base reflecting the current market conditions.
“We regret to see many good people leave our business. However, these changes are necessary and will help ensure our longer-term position in the market. Cost savings and strong productivity through our operations are delivering great results,” said Atlas MD Ken Brinden.
The job cuts followed on from the recent resignation of two Atlas board members, nonexecutive director Geoff Simpson and executive director Mark Hancock.
Atlas had also updated its annaulised cost saving target from between A$65-million and A$90-million to between A$75-million and A$100, by June next year, with the miner targeting an all-in cash cost of between A$64/t and A$68/t.
Despite the staff cuts, Atlas maintained its production guidance for 2015, with the miner expecting to ship between 12.4-million tonnes and 13-million tonnes of ore.