Fortescue to cut jobs and defer major projects after iron ore prices drop
Tuesday, September 4, 2012/
Fortescue Metals Group is aiming to save $300 million by cutting jobs and deferring several projects.
In a statement to the Australian Securities Exchange, Fortescue said it had lowered its full-year production and capital expenditure guidance in response to volatile market conditions and uncertainty over future iron ore prices.
Fortescue says until iron ore prices stabilise, it will push back the development of its Kings deposit within the Solomon mining hub and the completion of the fourth berth at the Herb Elliott Port project.
“These measures will result in a slight reduction to the previous FY13 production guidance of 86.5 Mt equity tonnes to a new range of 82Mt to 84Mt including the near term ramp up of Christmas Creek and Solomon Firetail,” the group said.
“As a result of these actions, Fortescue’s capital expenditure guidance for FY 2013 is revised to $US4.6 billion from the company’s previous estimate of $US6.2 billion.”
This article first appeared on LeadingCompany’s sister publication, SmartCompany.
Social media mishaps: Why businesses should think twice before cracking jokes online Catriona Pollard CP Communications founder
An ‘opportunity-hunting’ generation: Here's what millennial workers need and want Karen Gately Corporate Dojo founder
Spilling the beans: Why inviting someone to 'grab a coffee' is disingenuous and unnecessary Sue Parker DARE Group founder
The 10 most unemployable job titles on LinkedIn Ian Whitworth Scene Change co-founder
How Emily McWaters manages her Sydney-based business from Kangaroo Island Emily McWaters The Hamper Emporium chief
Why 'Orwellian' performance monitoring is crucial to building an ethical company culture Michael Kodari Kodari Securities chief