More SW job losses for Iluka

Iluka Resources has cut 47 jobs at its South West operations as it continues to face weak demand for its mineral sands products.

Iluka spokesman Robert Porter said the job losses came after more than a year of “soft demand” for the company’s two main products, titanium dioxide and zircon.

It is understood the 47 full-time positions will be “phased out” before Christmas.

Dr Porter said the job losses at Iluka’s South West sites were in addition to the 200 redundancies announced by the company earlier this year.

Iluka has moved to cut production and costs to protect margins on its mineral sands products, used in ceramics and paints.

It will draw on stockpiled inventory to meet markets in 2014.

Dr Porter said Iluka’s synthetic rutile kiln in Capel and the Tutunup South mine, both idled earlier this year, were expected to remain idle throughout most of 2014.

“It is not a closure and the expectation is when market conditions improve they will open again,” he said.

In a statement to workers, Iluka general manager of Australian operations Steve Wickham said the company’s actions were appropriate in light of the market conditions.

He said the company understood the impact of the job cuts but faced subdued markets while having a high inventory.

Bunbury Chamber of Commerce and Industries chief executive officer Ray Philp said the job losses were unfortunate but reflected the weakness of the global markets.

Mr Philp said the South West was a diverse economy and he hoped those laid off would be able to find employment in the region.

“It is regrettable and any job losses affect the local economy but unfortunately it was something the company had to do,” he said.

Collie-Preston MLA Mick Murray said the job losses came as the State Government pulled about $7 million worth of work in the region because of cuts to the Country Local Government Fund.

He said the projects would have provided short-term employment opportunities.

In March Iluka mothballed its Eneabba operations near Geraldton, cutting 65 jobs.