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The Fortescue Metals Group has revealed a $ 900 million sale in the development of iron ore, highlighting how labor shortages and rising material costs are improving Australia’s mining sector.
The company, one of the world’s largest producers of iron ore, said Friday it would cost $ 3.3-3.5 million to develop its iron bridge mine, which also affected labor costs, high material costs and a strong Australian dollar. a six-month delay.
The outreach was part of a review of the project in the Pilbara region of Western Australia output Three senior officials at Fortescue in February. This is the second time the costs of the Iron Bridge have exploded, and Fortescue said in February that the project would cost $ 3 billion compared to the original estimate of $ 2.6 million in 2019. Fortescue drives December 2022 to produce the first iron mine.
Demand for Western Australian workers is soaring that iron ore prices have risen, prompting Rio Tinto, BHP, Fortescue and small producer resource groups to invest in new mines.
Elizabeth Gains, chief executive of Fortescue, said job cuts are a problem for group contractors who are primarily working to expand the Iron Bridge. He added that some of these contractors are finding it difficult to move the workforce to Australia due to coronary virus restrictions.
Fortescue’s cost jump has been the latest to be reported by miners due to a rise in iron ore and a shortage of labor caused by Covid-19 linked to the closure of Australia’s international and national borders.
This week, BHP warn About the “lack of critical skills” of pilbar train drivers in a remote region that produces the majority of Australia’s iron ore. The world’s largest miner said it was hiring 200 new train drivers and is continuing its rapid training in maintenance-oriented occupations and qualifications.
Last month Miner’s mineral resource production forecast for iron ore fell by 13% due to a shortage of truck drivers caused by the closure of state borders.
Employment in the Western Australian Resource Industry increase 5 percent, up from a record 135,001 last year, made a $ 19 billion investment in the sector. According to Western Australian government statistics, since the end of previous growth in 2012-2013, investment in the mining and oil industry was the first year-over-year growth.
The unemployment rate is 4.8 per cent in western Australia.
“Pilbara is an Australian power at the moment, largely due to an insatiable desire for the world’s iron ore,” said Michael Stutley, of Kingston Reid, a partner in the employment law firm. “Skills shortages are reaching a critical level. If nothing is done, then [it] it will become a negative sign of the economy. “
Stutley said Canberra needs to introduce “targeted job bubbles” with other countries to help skilled workers enter Australia and help the resource industry.
The Australian Conservative government has said the country’s international border will not reopen until mid-2022.
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