Business · Companies · 1 hr ago
South32 considers job cuts at flood-hit Groote Eylandt manganese mine
South32 is consulting workers about possible job losses at its manganese mine on Groote Eylandt in Australia’s Northern Territory.
The mine, operated by the Groote Eylandt Mining Company, has faced flooding from Tropical Cyclone Megan in 2024, wet seasons and groundwater seepage.
The company says production costs have risen by more than 80 per cent in recent years and it needs to cut $129 million from the business.
It also plans to spend about $100 million on water infrastructure over the next two years, subject to regulatory approval.
The flooding damaged mine pits, roads, a bridge and the island’s wharf, and exports did not resume until 2025.
South32 says the changes are intended to support the mine’s long-term viability and that it will explore redeployment for affected workers where possible.
The company is expected to give staff more information about possible redundancies by the end of the week.
South32’s Groote Eylandt manganese mine has begun consulting staff and contractors about possible redundancies.
The company is seeking to cut $129 million as operating costs have risen by more than 80 per cent in recent years.
Flooding, including damage from Tropical Cyclone Megan in March 2024, has affected the mine’s operations.
GEMCO plans to spend about $100 million on water infrastructure over the next two years, subject to regulatory approvals.
South32 says the changes are intended to strengthen the business’s long-term sustainability.
- Who
- South32 and its Groote Eylandt Mining Company mine. Employees and contractors are being consulted about possible impacts.
- What
- The mine has begun consultations about workforce changes, with redundancies likely.
- When
- The consultations had begun by October 12, 2026. Management was expected to provide staff with more information by the end of that week.
- Where
- Groote Eylandt, in the Northern Territory, Australia.
- Why
- The company is responding to higher costs and a more challenging operating environment after years of flooding impacts.
This story does not have two clearly opposing sides.
GEMCO has completed an internal review in response to a more challenging operating environment and increased cost pressures, and has begun implementing changes designed to strengthen the long-term sustainability of the business.
This is not something we take lightly and our priority is to support affected employees through the process, including exploring redeployment opportunities where possible.
Tropical Cyclone Megan hit Groote Eylandt, damaging the wharf and affecting the mine site.
Exports from the island restarted.
GEMCO had begun consultations with staff and contractors about possible impacts from workforce changes.
- Cost reduction target
- $129 million
- Recent cost increase
- More than 80 per cent
- Planned water infrastructure spending
- About $100 million over the next two years, subject to regulatory approvals
- Cyclone
- Tropical Cyclone Megan hit Groote Eylandt in March 2024
- Export restart
- 2025
Sources
Related news
Business News subscription page outlines Western Australia-focused services
Queensland minister warns falling prices could slow Brisbane homebuilding
ASX 200 rises 0.76% as banks and miners lead gains
Dalaroo, Horizon and Omega report new exploration results
Australian petrol rises above $2.40 a litre amid Middle East supply fears
Overwatch Technologies plans $8m ASX float
Horizon Gold drilling finds high-grade gold at Western Australia project
Adidas sues Australian fashion label White Fox over four-stripe clothing design
Omega's Canyon-4 well finds more oil and gas-bearing rock in Queensland
Australian savings rates reach 6% as banks compete for deposits
Firmus scraps planned Australian IPO as investors question its valuation
