Negotiations over the future of the Buzzard iron ore mine in South Australia’s Far North have broken down, with the operator placing almost 200 workers on unpaid leave.
Staff were informed of the decision following a meeting late yesterday afternoon (30 September), held at the Buzzard mine near Coober Pedy.
Agile Mining Services and a contractor involved in the Whyalla Steelworks have been negotiating the future of the Buzzard operation, which remains uncertain.
This follows one of Whyalla Steelworks’ dilapidated blast furnaces being shut down permanently just two weeks ago.
The shutdown of this furnace affected the jobs of around 500 workers and 100 labour hire contractors. Some are expected to be redeployed, retire, or be rehired by firms including mining giant BHP Group (ASX:BHP).
South Australia is set to lose its primary steelmaking capability, which was first established at Whyalla in 1941. Total jobs at the steelworks are expected to fall from 1,700 to 1,200.
Agile Mining Services was established in 2020 and describes itself as a “young and progressive mining company focused on unlocking the mineral potential of South Australia”.
The company’s operations are all located in the surrounding area of Coober Pedy, including Buzzard and Peculiar Knob.
Buzzard has a reserve of 13.8 million tonnes (Mt) of iron ore and a remaining mine life of five years, with direct shipping ore (DSO) capabilities.
Peculiar Knob is also a DSO operation, producing 3Mt per annum of hematite iron ore.
Write to Maddison Elliott at Mining.com.au
Main Image: Agile Mining Services
