South32’s Worsley Refinery has neither confirmed nor denied reports that up to 180 workers stand to lose their jobs.
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Worsley refinery operations vice president Dino Otranto said the company was looking at ways to operate more efficiently when questioned by the Collie Mail about reports workers were told this week between 120-180 jobs may be lost in the next few weeks.
“Like most resources companies, South32 Worsley Alumina was taking action to improve productivity and cost efficiency in a difficult business environment that continues to decline,” he said.
“The alumina price has fallen by about 40 per cent over the past six months."
South32 has been cutting costs across the company, reducing its net debt to $US115 million.
“Great work has already occurred across Worsley and other South32 operations so they can continue to be sustainable and successful businesses and deliver value to shareholders, employees and the community,” Mr Otranto said.
“More needs to be done but we are not in a position to talk about operation-specific cost reduction activities at this time.”
Since it was split from BHP Billiton last May, the company’s share price has tumbled to below $0.90 as commodity prices have dropped.
In its December quarterly report, the company reported a drop in production for most of its assets apart from alumina – which increased 1 per cent.
On Thursday, the company announced "substantial job losses" across its operations, but were still finalising a cost reduction plan.
The news follows Premier Coal’s reduction of temporary workers by 40 at the end of January.
Collie-Preston MLA Mick Murray said any jobs lost would have a big impact on the community.
“It would be disappointing if the numbers that are mentioned are to go,” he said.
“The impact would not just be felt in Collie, but through the whole South West.
“The other problem I see is that with high unemployment it will be harder for people to find work.”