Jobs axed at Rinehart’s Roy Hill iron ore project

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Following the two prohibition notices issued by Western Australia’s Department of Mines and Petroleum over safety concerns, Roy Hill has once again made the headlines with the announcement that around 250 jobs have been cut at Gina Rinehart’s iron ore project.

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The $10 billion iron ore, port and rail project at Port Hedland in Western Australia, will not be delayed, the company insists.

According to The Australian, head contractor Samsung C&T terminated the $200 million contractor with subcontractor Laing O’Rourke to construct steel and mechanical, piping and electrical works for the port landside infrastructure. The two parties were unable to resolve a long-term dispute over the mine’s progress. Samsung is now reportedly in the process of negotiating with NRW Holdings, another subcontractor at Roy Hill.

The 150 blue collar jobs and 100 white collar jobs were cut as a result of “commercial considerations”, a Roy Hill spokeswoman said.

“Samsung is ultimately responsible for delivery of the project within budget and schedule and we respect their right and ability to make this decision,” the spokeswoman said.

“This change has not impacted the completion date as per the overall construction schedule.”

The project is on schedule and will be completed in accordance with the set plan, the spokeswoman added.

“Samsung C&T is taking all the measures for the successful delivery of the project,” she said.

Roy Hill is 70%-owned by Hancock Prospecting and stretches 34km-long and 17km-wide across Western Australia’s Pilbara region.