Job losses likely at remote island mine as costs nearly double due to flooding
Production costs at South 32's Groote Eylandt mine have increased by more than 80 per cent in recent years.
South 32, a company operating a manganese mine on the remote island of Groote Eylandt in the Northern Territory, appears set to make job cuts as operating costs nearly double due to persistent flooding issues. The company is planning to slash $129 million from its budget and invest approximately $100 million in new water infrastructure to bolster long-term viability.
GEMCO, the nearby mine site, has initiated consultations with staff in response to a more challenging operational environment marked by years of flooding impacts, increased expenditures, and flooding-related damages. Tropical Cyclone Megan in March 2024 exacerbated these problems, causing extensive damage to the island's infrastructure, including the mine's pits, a vital bridge, and several roads.
The mine's operations are expected to wind down within the next decade, according to the local Aboriginal land council. South 32 is actively engaging with employees and contractors potentially affected by the restructuring. Officials from two unions representing workers at GEMCO suggest that office personnel might be the primary targets of redundancies, though blue-collar workers remain a possibility.
The company is committed to supporting affected employees and exploring redeployment opportunities where feasible. The enterprise bargaining agreement between South 32 and the workers expires at the end of 2027.
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