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16th December 2018

Mining Firm, Iluka, Suspends Work as Workers Go on Strike for Improved Services!

By a press release (09/11/18)

The Mineral Sands Miner, Iluka, has temporarily suspended mining operations at Sierra Rutile after a workers' strike at the operation.


Illuka, the ASX-listed company reported in a statement that the strike action was unlawful but peaceful and added that their decision to temporarily suspend mining activities was to ensure the continued safety of employees and the integrity of the assets. (Photo: Iluka Resources Managing Director Tom O'Leary).

Iluka said that it had engaged with employees and union officials to understand the rationale for the strike action, as well as with ministers and senior officials in an effort to resolve the dispute that centres around improving the services of workers.

In the Illuka press release, the company has warned that the strike action would have serious economic impact on a full-year Rutile production basis.

Reports say, at the end of September, the Sierra Rutile operation had produced 93,400 ton of Rutile for 2018, with a maximum of 135,000 ton expected for the full year depending on when the strike action is resolved.

Iluka has previously expressed disappointment in the production performance of the Sierra Rutile operation, specifically around commissioning issues on the in-pit mining unit and age-related failures of equipment at the dredge, which has been accompanied by increased costs in addressing operational issues at the mine.

Iluka Resources managing director Tom O'Leary see no compelling reason to divest the royalty stream from BHP's Mining Area C.

Courtesy: The Calabash Newspaper


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