About 200 workers at an iron ore mine in SA's far north are facing uncertain futures amid a financial dispute between the project's owner and a major on-site contractor, the ABC understands.
Workers at an iron ore mine in SA's far north are facing uncertain futures amid a financial dispute between project owner Central Iron and contractor Agile Mining Services.
In a letter to staff, Agile said it had made the decision to shut down operations at the Buzzard mine site south of Coober Pedy. The state's mining minister described the situation as an "internal dispute" that did not reflect on the viability of the mine. About 200 jobs at an iron ore mine in South Australia's far north are in limbo amid a financial dispute between the project's owner and a major onsite contractor, the ABC understands.
In a letter to staff seen by ABC News, contractor Agile Mining Services said work would be shut down at the Buzzard mine site south of Coober Pedy. The project is owned by Central Iron — a subsidiary of Peak Iron, whose website states the Buzzard mine extracts high-grade hematite for shipment. In the letter, Agile told workers to use leave if available and to expect further advice once a "commercial position" had been resolved.
"Agile is therefore shutting down site operations and directing its own personnel to cease normal duties, with employees to utilise available annual leave … where applicable," it stated. But Mining Minister Tom Koutsantonis said the situation at the Buzzard site was an "internal dispute" that did not reflect on the mine itself.
"This is not about them not being a viable mine or there not being the work — this is a dispute about cost," he said. "This is a question of a mining company who's hired a contractor to do the mining, and they're having a dispute about how much they're paying the contractor to do the mining.
" He said the government was not party to the dispute and would not be intervening, but suspected there would be a quick resolution. "The contractor has stood down and is now negotiating with the mining company about the cost of the mining," he said.
Mine Site Iron Ore Workers Limbo Agile Mining Peak Iron Central Iron Jobs Workforce Staff Uncertainty
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