Operations scaled down after rockfall on October 16
Mount Gibson has announced 450 redundancies as it prematurely reduces its Koolan Island operations following a rockfall on October 16.
The iron ore mining company said in an ASX announcement that approximately 250 people would be made redundant, while 200 contractor roles would be lost. Only about 75 site personnel will be retained.
Employee entitlements will be paid in full, according to the company. Support will also be provided to all individuals.
"It is extremely disappointing for the Company and its people that we must prematurely ramp down operations at Koolan Island, however the physical safety of our personnel is our prime consideration," said Mount Gibson Chief Executive Officer Peter Kerr in a statement.
Premature scale down announced
The scaled-down operations at Koolan Island come several months before the originally scheduled conclusion of production, which was set for around September 2026.
The change comes after a rockfall occurred on the eastern footwall of the Main Pit on October 16.
While no personnel were injured in the incident, all mining operations have been suspended and an exclusion zone was implemented in the Main Pit.
Mount Gibson said remediating the rockfall-affected area and resuming mining is "not viable" given safety risks identified during intensive assessment of the incident.
Only processing operations will continue on its Koolan Island Operations due to the availability of ore stockpiles that meet near-term scheduled shipments.
"We will now be working closely with our site team, the Dambimangari Traditional Owners and other relevant stakeholders to responsibly manage the transition and preserve a strong legacy in the region," Kerr said.
