Advanced Search

Share Coverage



Category: Mining Industry / Mining (Rural) / Mining Environmental Issues

At least 140 jobs axed as Victoria's largest gold mine closes

Tuesday, 13 Dec 2016 07:00:33 | Bridget Judd

Up to 150 jobs will be axed after Kirkland Lake Gold announced it would cease mining at Stawell. (ABC News: Margaret Burin)

Up to 150 jobs will be made redundant, after Kirkland Lake Gold announced it would cease underground mining at Stawell — Victoria's largest gold mine.

The company said the decision to suspend operations and transition into a care and maintenance phase had been under discussion for "some years" due to declining profitability.

"In 2009 Stawell Gold Mines produced more than 86,000 ounces of gold, compared with just over 32,000 ounces this year," president of Australian operations, Darren Hall, said in a statement.

Mr Hall said that as far back as 2012, Stawell Gold Mines (SGM) had informed the community that it would be transitioning, due to declining gold production.

"That transition began with a restructure of operations and a major downsizing of the workforce," he said.

"Through the resourcefulness of our employees we have managed to continue operations for the past four years, but the mine can simply no longer produce enough gold to warrant the continuation of mining."

During the care and maintenance phase underground drilling for exploration will continue, the mill and pumps will be kept in operational condition "to ensure the possibility of a restart", and environmental monitoring will continue.

SGM will retain a team of between 15 and 20 people to maintain the site, monitor the environment and continue exploration.

"Unfortunately between 140 and 150 positions will be made redundant," Mr Hall said.

Company 'hopeful' Stawell Gold Mines will be reopened

A proposal to create an open-cut gold mine at Big Hill, next to Stawell, was rejected by the Victorian Government in 2014.

At the time, Kirkland Lake Gold said the Big Hill mine would have drawn out the life of one of Stawell's biggest industries for another four years.

However, the mine's boundary would have been just 60 metres from the closest houses, and was rejected by the then-planning minister Matthew Guy, because of health and environmental concerns.

SGM General Manager Troy Cole said the site was being maintained in the hope it would reopen.

"There have been some promising results during initial exploration of the Aurora B site, which is on the east flank of the existing Magdala Mine. However, we need time to further our understanding of the potential on the east flank," he said.

"It is our hope that the Big Hill open cut mine will be the next project to commence. We remain in consultation with the regulatory authorities to establish an assessment process for the project."

The company maintains it has since addressed the issues raised by Mr Guy and the government advisory panel regarding the Big Hill mine, and said it was working with the State Labor Government to have the proposal reassessed.

It said the pathway for this reassessment was "expected to be announced any day".

Governments 'need to act'

Duncan McGregor from the Construction, Forestry, Mining and Energy Union (CMFEU) said workers arrived on site this morning to discover they had been locked out.

Big Hill in Stawell, the site of a rejected open-cut gold mine. Photo: Big Hill in Stawell, the site of a rejected open-cut gold mine. (ABC News: Robert French)

"There will be very few [employees] staying. You are talking about 150 jobs going, and 15 to 20 staying," he said.

"So the odds aren't stacked in their favour."

He said workers had hoped the Big Hill proposal would be approved, to prolong operations in the region.

"From a state level, there is not much they can do other than [approve] the Big Hill proposal, and I don't see that being pushed through in a hurry," he said.

"From a federal level, there's not much they can do either, apart from retraining these people to do jobs that don't exist in the area."

Ripon MP Louise Staley said the Victorian Government needed to "get off its hands" and consider the Big Hill proposal.

"The company has been pleading with the government just so it has a pathway forward," she said.

"The government needs to go through a proper process, and if it comes out with an environmentally acceptable outcome, then Big Hill should be mined."

"They have refused to do anything, and that has left the company at this point."

The Victorian Government has been contacted for a response.

Workers 'gutted' by closure

Mr Cole said employees would receive their full entitlements and would be provided with support services, including financial advice, resume writing and outplacement support.

"We understand suspending underground operations and the subsequent loss of employment opportunities will have an economic impact on Stawell and the surrounding region, and we will work with local authorities to mitigate this impact where possible," he said.

"Since the announcement in 2012 that resources were declining, we have been working with state and local governments in preparation for the transition even while we were exploring other options."

One worker, who asked not to be named, told ABC Ballarat employees were "gutted".

"Some of these guys have been here 25 years," he said.

"I'll have to look interstate, being away from my partner and family, and that's going to be the same for all the other blokes who have lost their jobs."

"It's all fly-in and fly-out work."

Northern Grampians Shire Council Mayor Tony Driscoll said it was a major blow for the region.

"We will try and support our people, but you can't just pull 150 jobs out of a hat," he said.

"This is a devastating blow to our community."

"We need federal and state governments to get on board and help us through this."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend