Rio Tinto Cuts Jobs at West Angelas Mine Amid Green Iron Concerns
Australian mining giant Rio Tinto has laid off a group of workers at its West Angelas iron ore mine near Newman, in Western Australia’s Pilbara region, and scaled back proposed developments at two nearby sites.
Approximately 40 production staff were let go after arriving for their shifts this week, according to The West Australian. Rio Tinto confirmed the job losses but did not disclose the exact number.
A spokesperson explained that the company regularly assesses its workforce to ensure it aligns with ongoing operational needs.
Despite its profitability from iron ore exports to China, workforce reductions in Rio Tinto’s core iron ore division are uncommon. On Thursday, iron ore closed at US$102.17 per tonne.
West Angelas, which was built 20 years ago at a cost of about $1 billion, has the highest operational costs among Rio’s 17 Pilbara mines.
A new report from Climate Energy Finance (CEF) warns that Australia could lose up to $70 billion in annual export revenue if it doesn’t adapt to the growing demand for “green iron.” Green iron technology, which promises to reduce carbon emissions by up to 90%, could position Australia as a global leader in the sector and increase export revenue to $250 billion.
However, failure to embrace green iron could see a decline in Australia’s iron ore exports as major importers like China decarbonize their supply chains.
Australia currently holds a 56% share of the global iron ore export market, with nearly all of its exports consisting of hematite. This ore is processed in coal-powered blast furnaces, contributing significantly to global carbon emissions.
BHP, Rio Tinto, and Fortescue are all pursuing green iron initiatives, with Fortescue planning to open a pilot plant next year.
