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Union officials estimate BMA’s cost-cutting move has sliced 400 jobs from contractors Macmahon and HMP Constructions, with the latter entering into administration on Tuesday.
Reported by ABC News, of the 500 HMP workers employed at central Queensland mines, about 175 people are expected to lose their jobs.
An appointed administrator told the Daily Mercury newspaper the decision to go into administration followed BMA’s contract cutbacks and a need to scale back.
Efforts are being made to keep the 150 workers HMP has contracted at Wesfarmers’ Curragh mine.
Curragh executive general manager Rod Bridges told the newspaper he was absolutely flabbergasted at the news and had no idea HMP was in financial difficulties.
He also said the contractors were still working onsite as usual and Wesfarmers would assist HMP and the workers through the difficulties.
The newspaper reported HMP as owing about $150 million to 190 creditors.
BHP spokeswoman Samantha Evans has previously told International Longwall News the miner normally operated by matching the number of contractors with the amount of activity in an operation, and the company had already announced it would be producing less metallurgical coal.
She confirmed the contractor job losses were outside of BHP’s plans to lay off 1100 coal workers by June, as announced in January.