VOLUNTARY redundancies were open to all Glencore zinc employees working in areas anticipated to have job cuts, George Fisher general manager Chris McCleave said.
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Mr McCleave answered questions from Mount Isa councillors in an open council meeting on Wednesday to address Glencore’s decision to cut its total annual zinc production by 500,000 tonnes.
Glencore’s decision announced last Friday will impact 466 positions at Mount Isa Mines, but the majority of them would be fly in, fly out, Mr McCleave said.
He said it would also “significantly impact” contractor roles.
Exact numbers will not be confirmed until statutory processes were complete.
The redundancies would not be offered to those working in areas not affected by cuts.
“The process will be voluntary, the process started today (Wednesday), and continues the next three to four weeks,” Mr McCleave said.
He said Glencore will work on initiatives to support local employment in Mount Isa.
“No doubt it is tougher to receive the news than to give the news.
“That’s what is driving us in looking after our workforce as best as we can.”
Mount Isa councillor Anne Seymour said it was a “tough job” for local managers such as Mr McCleave to make these cuts.
“I just see the hurt in your eyes,” Cr Seymour said.
She said it would have a ripple effect for Mount Isa businesses.
“But what I said is it is it is a demon that’s got to be done.”
Glencore’s North Queensland Zinc operations executive general manager Denis Hamel said production cuts were made because of weaker than expected demand of zinc and negativity in the Chinese economy.
“We believe that the current zinc, lead and silver prices do not reflect the fundamentals of supply and demand,” Mr Hamel said.
“It is important to preserve the value of Mount Isa’s world-class resources, rather than selling our finite commodities at the current low prices.”
Glencore will continue to invest in its zinc assets in north Queensland.
It will continue funding the $35 million McNamara road upgrade and a diamond drilling program which will help restart operations at Lady Loretta.
Operations at the Lady Loretta underground mine north of Mount Isa are suspended as a result of zinc production cuts.
“It is important to also note that we will continue to operate the zinc and lead concentrator and lead smelter in Mount Isa, and both the George Fisher and McArthur River mines will still be producing at levels in excess of the most recent pre-expansion levels,” Mr Hamel said.
He said the company had a positive outlook on the medium and long-term prices for zinc, lead and silver because of their importance.
