the future...

Expect to see a great deal more of this in future. How does this relate to WA property? Well Blind Freddy could see that (not the blind-Freddies that wear rose-tinted glasses though). lol


Junior miner cuts a third of workforce
3rd November 2008, 13:00 WST

Iron ore miner Mount Gibson Iron has been forced to cut a third of its workforce after a number of its customers defaulted on binding off-take agreements.

Mount Gibson managing director Luke Tonkin said today a total of 190 people would be temporarily axed from its two operations in WA.

The company has been forced to modify its mine plans and will ship less ore this financial year after three customers defaulted on off-take agreements.

“At Tallering Peak, we’ll lose 40 (people) from now through until July and then we'll kick it back up again,” Mr Tonkin told AAP.

“From Koolan island we'll lose 150 (people) and then we’ll kick it back up again in July.”

Mount Gibson employs about 340 people at its Koolan Island mine and about 220 people at its Tallering Peak operation.

APAC Resources, Mount Gibson’s largest shareholder, and Shougang Concord International Enterprises have agreed to purchase the immediate available production from the company and have signed long-term off-take agreements, which come into effect from July 1, 2009.

Mount Gibson shares dropped three cents, or 7.41 per cent, to 37.5 cents by 12.50pm.

AAP