NSW: Mine merger results in further job losses

AAP General News (Australia)
12-10-1999
NSW: Mine merger results in further job losses

By Natalie Davison

SYDNEY, Dec 10 AAP - Mining giant Rio Tinto has announced plans to merge two of its
Hunter Valley operations, resulting in the loss of 50 jobs.

The announcement of the merger of the Hunter Valley No 1 mine and the Howick mine comes
less than a month after Rio Tinto axed 84 miners from its Mount Thorley operations.

But union officials fear the latest losses may not be the last.

Construction, Forestry, Mining and Energy Union northern division state president Mick
Watson said Rio Tinto was not interested in workers and only wanted to maximise its profit.

"This is typical of Rio Tinto," he said.

"What sort of a Christmas present does this give miners' families?

"They did it at Mt Thorley a fortnight ago. Now this is the Christmas present they
are giving miners at the Howick operation."

Rio Tinto subsidiary Coal and Allied said the 50 workers to be retrenched under the
merger plan would be offered voluntary redundancy packages.

Mines manager Alan Davies told ABC Radio the cuts would take effect in May next year
and the merger would reduce equipment and workforce costs.

But Mr Watson said there were fears more miners would lose their jobs in the new year,
with Rio Tinto competitor Cypress putting all its assets up for sale.

The Mt Thorley mine owned by Coal and Allied is separated by a fence from Cypress's Bulga mine.

"If those mines merge that would be an absolute disaster for miners," Mr Watson said.

"Going on Rio Tinto's previous efforts they could rationalise operations and easily
halve the workforce.

"There will be substantially more job losses than what we're talking about at Howick."

Mr Watson said Rio Tinto had invited union officals to a meeting next week to discuss
the future of Hunter Valley operations.

AAP nd/sub/de

KEYWORD: RIOTINTO

1999 AAP Information Services Pty Limited (AAP) or its Licensors.