BHP Billiton’s demerger of South32 and transition to a Perth-based headquarters is cited as the reason for the redundancies. 

Media reported redundancies to be up to 70, a figure denied by a Cannington spokesman. 

“The actual impacts will not be clear until redeployment options are fully considered,” the spokesman said. 

The spokesman said a focus on increasing production and reducing costs was another motive for the expected decision. 

Townsville’s support hub will close in late June. 

“Some of these support roles will be relocated to Cannington’s mine site and Townsville based facility or South32’s Perth headquarters and, in some cases, a small number of redundancies will apply,” he said. 

“We are working closely with employees who will be impacted by these changes.” 

South32 positions including Cannington’s asset president Peter Sharpe came into effect from March 31. 

A BHP Billiton statement made in March indicated shareholders would need to approve the proposed demerger at meetings to be held May 6. 

“The board believes that with a more focused portfolio BHP Billiton will be better placed to achieve further productivity benefits in its core portfolio, while creating a new substantial new company, South32,” the statement said.