Iron ore miner Fortescue Metals has shelved $1.57 billion of expansion plans and cut hundreds of workers’ jobs, in a further sign that the peak of the mining boom may have passed.
Fortescue, founded by billionaire Andrew Twiggy Forrest, blamed the cuts on uncertainty over the spot iron ore price which has fallen rapidly amid reports of China scaling back its steel making capacity.
The announcement prompted Prime Minister Julia Gillard to call for calm in the mining industry, pointing out that hundreds of millions of dollars of planned investment was still likely to be spent.
Far from scaling back, rival iron ore miner Rio Tinto is pressing ahead with its own aggressive expansion plans in Western Australia’s Pilbara region.
Fortescue chairman Nev Power said on Tuesday that immediate cuts to operating costs and jobs would save $300 million.
“In total there will be a reduction of several hundred staff and several hundred contractors across the business,” Mr Power said…
Job Market Monitor 
Discussion
No comments yet.