Workers laid off, more jobs cuts likely as Broken Hill mine announces staged shutdown

Workers laid off, more jobs cuts likely as Broken Hill mine announces staged shutdown

An uncertain future lies ahead for workers at one of Broken Hill’s mines following the announcement of a staged shutdown of operations.

Key points:

  • Workers at CBH Resources’ Rasp mine have lost their jobs, and more cuts are likely
  • The Japanese company that owns the mine, Toho Zinc, is trying to sell it
  • Broken Hill’s mayor is hopeful the company will find a buyer

Some staff at CBH Resources’ Rasp Mine, have been told today will be their last on site, while others will find out their fate at the end of the month.

For many, their future will hinge on the sale of the mine, as Japanese parent company Toho Zinc searches for a buyer.

Around 200 workers in total, including contractors, could be impacted by the closure of the operation, which mines zinc, lead and silver.

CBH Resources declined multiple interview requests, but said in a statement that the lay-offs were the result of a difficult business decision.

“There will be a workforce reduction this year with further reductions as BHO [Broken Hill operations] moves to a staged closure in 2024,” the statement read.

CBH Resources said the closure was occurring because its parent company was “not in a position to invest”.

A new owner is being sought for the Rasp Mine.(
ABC News: ABC News: Bill Ormonde
)

Some jobs will remain beyond November as the mine goes into care and maintenance mode.

“In the coming days BHO will consult with all of our employees and put in place support services to assist people who are affected as a result of these changes,” a spokesperson said.

In June last year, CBH refuted claims the Rasp Mine could be changing hands. 

Broken Hill Mayor Tom Kennedy says the situation is “sad for all people involved”.(ABC Broken Hill: Josh Mercer)

Holding out hope

Broken Hill mayor Tom Kennedy said his thoughts were with those who had been made redundant and their families.

“Most people have mortgages or other payments that they have to make, and it would be a very stressful time,” he said.

Drilling has stopped, and jumbo operators and chargers have been told their services are no longer be required from today.

Despite the company’s announcement, the mayor said he was confident a buyer would be found.

“We all need to hold out hope, because I really do believe it is a mine that will be picked up by someone,” Mr Kennedy said.

“I have no doubt that the mine will continue operations into the future.”

Other mining ventures in the region, like Hydrostor (pictured), will ramp up operations in 2024.

Mr Kennedy said he was confident other projects in the region, like Hydrostor and Cobalt Blue, would create opportunities for those at CBH Resources who had lose their jobs.

“I hope and ask that those people will keep the faith in Broken Hill and understand that there will be jobs for all the people working in CBH,” Mr Kennedy said.

“We’ll make contact with both the state and federal government to ensure that they do all they can for anyone that is put off from the mine.”

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