Sad day for Queensland as GFC bites harder

The loss of another 1400 jobs from Queensland’s resources sector has driven home the harsh reality of the global financial crisis, Queensland Resources Council Chief Executive Michael Roche said today.

‘The job cuts announced by BHP Billiton – the world’s biggest mining company – emphasise the extent of the global recession and the challenges ahead for Queensland and Australia,’ he said.

Today, BHP Billiton announced that 1000 positions would be phased out of its Queensland metallurgical coal mining operations in the Bowen Basin by June and up to 400 positions would be lost at its Yabulu nickel refinery, near Townsville.

‘This is a particularly sad day for the Bowen Basin and Townsville, as the region is still coming to terms with the collapse of north Queensland investment house, Storm Financial.

‘The crash in global steel production is punishing Queensland hard as it flows on to components such as metallurgical coal, nickel and zinc.

‘In the space of one day, our estimate of job losses in mining and minerals processing in Queensland has jumped from 1250 to 2650, with no hint of tolerance from a recession now entrenched in our major markets.

‘Of great concern and what we have to factor in as a state and a nation is the impact on regional communities as resource sector job losses flow-on through economic multipliers to other industries.

‘For example, in the Bowen Basin the resources sector is responsible directly and indirectly for one in every four jobs.

‘The QRC is urging state and federal governments to give their highest priority to stemming the inevitable flow-on of unemployment to regional communities in Queensland,’ he said.

Media contact: Jim Devine (07) 3295 9560