🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

CORRECTED-Australia's iron ore giants push workers to stay at mine sites to escape coronavirus

Published 27/03/2020, 08:14 pm
BHP
-
FMG
-
RIO
-
RIO
-

(Corrects day to Monday from Friday in paragraph 7)

* Rio Tinto , BHP, Fortescue to lengthen workers' shifts

* Workers to stay at mine site for minimum of two weeks

* Fortescue says move could cut people traffic by 40 pct

* Miners also push for interstate workers to relocate

By Melanie Burton

MELBOURNE, March 27 (Reuters) - Australia's iron ore giants are looking to reduce the threat to their operations from a coronavirus pandemic, by pushing workers to spend weeks on site away from families and relocate from the eastern seaboard, company and union officials said on Friday.

Rio Tinto RIO.AX RIO.L , BHP Group BHP.AX BHP.L and Fortescue FMG.AX are moving workers who would usually commute from major cities by aeroplane to stay on site for a minimum of two weeks, they said in separate statements.

Fortescue workers would move to a roster of two weeks on and two off, or four weeks on and two off, cutting staff movement by 40 percent for a "significant decrease" in risk, the world's fourth biggest iron ore miner said.

The measures are expected to last for at least three and as many as six months.

"We recognise it is a big ask for our people to be away from families on a different roster pattern at short notice and we will do everything we can to support them during these difficult times," Rio Tinto said.

Western Australia declared a state of emergency and closed its borders this week to all but "essential" workers.

Mine workers living in cities who fly in and fly out (FIFO) for work at remote mine sites were exempted, but a ban will take effect from Monday for such workers from Australia's worst-stricken state of New South Wales.

Australia's infection rate is slower than many other nations, but officials are concerned infections have accelerated over the last week and plan to deploy the military to ensure people comply with orders to isolate themselves. have flagged an outbreak as a major threat to mine operations, particularly as staff work in close proximity in enclosed areas underground.

Western Australia accounts for more than half of global output of the steel-making ingredient expected to rake in A$101 billion ($61 billion) this fiscal year as the country's top export revenue earner.

That role is particularly critical for the economy as Australia faces its first recession in nearly three decades.

Fortescue and Rio Tinto were pushing to accommodate workers near remote mine sites or Western Australia's capital of Perth, but not offering adequate compensation, the state unit of the Construction, Forestry, Maritime, Mining and Energy Union said.

"Only BHP has offered generous arrangements that would cover accommodation costs and recognise the impact on families if workers move west temporarily," it said.

Rio Tinto declined to comment on compensation. Fortescue had no immediate comment.

All the miners said they were working to improve the safety of workers and mining communities. They are some of the biggest employers of indigenous Australians and many miners operate near remote communities.

Authorities see the virus as a major risk to some of those communities. as they are far from major hospitals and suffer a greater prevalence of underlying health issues. ($1=1.6483 Australian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.