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HomeMining Industry News Fears Raised As Caterpillar Continues Cutbacks in TAS

Fears Raised As Caterpillar Continues Cutbacks in TAS

Thursday 16th of April 2015 10:46:13 AM



The future of Tasmania’s north-west mining industry is declining as the downsizing of Caterpillar in Burnie continues.

Last week, it was announced that 280 jobs would go at its heavy parts manufacturing plant as the operation was moved to Thailand.

The iron ore price has plunged to below US$50 per tonne compared with over US$130 per tonne two years ago. It is feared the price could go as low as US$35 per tonne.

Wayne Bould from the Tasmanian Minerals Council, claims Tasmania is more vulnerable to the current economic climate than its mainland counterparts, because it places businesses in a tougher position.

North West of the state, there are already two mines skating thin ice at the Nelson Bay River and the other at Riley Creek.

Smaller mining operations are more susceptible to the low iron ore price and this has Tasmanians worried for the future of these companies.

The low price of iron ore has placed significant doubt on those certain companies because of the need to pay for the infrastructure to process the magnetite.

However, large companies in the region such as Grange Resources is also feeling the pain of low iron ore prices.

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