Tasmania's mining industry takes another hit
Posted
BHP will not rule out job losses at its Tasmanian smelter. (Reuters: Tim Wimborne)
The global economic crisis has hit another Tasmanian mineral processor with BHP Billiton cutting the production of manganese alloy at its TEMCO smelter in the state's north.
BHP Billiton is slashing manganese alloy output across its global operations by around a fifth, due to weak market conditions, including at its majority-owned TEMCO smelter at Bell Bay.
It comes as prices for the metal continue to plunge on global markets.
Earlier this week Oz Minerals announced about 35 contract miners will lose their jobs at the company's Rosebery mine on the state's west coast.
But the Australian Workers Union says it has received an assurance from BHP there will be no immediate job losses at its Tasmanian smelter.
Robert Flanagan from the Australian Workers Union says he has been assured by TEMCO that it will avoid having to cut its workforce by bringing forward work on a multi-million dollar rebuild of its alloy furnaces.
"There'll be no immediate impacts on employment numbers," he said.
Work on the furnaces is expected to be finished mid next year, and after that, the 290 jobs at the plant will be at the mercy of global minerals prices.
The company says it's not expecting to restart the furnaces until market conditions improve.
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