The company has terminated the contractors employed by mining and construction MacMahon Holdings in a bid to narrow down operating costs across its global operations.
Confirming the suspensions, MacMahom stated that its contract is still intact.
Rio Tinto spokesperson was quoted by The Western Australia as saying that the move was a in the wake of company’s focus on costs, alongside improving efficiencies and miner’s transition to a fully underground mining operation.
"Like others in the mining industry, we are looking to reduce costs in the business. Seventy-eight contractors from one of our underground contracting companies have been advised that their services on the Argyle underground project are no longer required," added the spokesperson.
"These contractors are part of a temporary construction workforce providing administrative, advisory and mining services roles to the project."
The developments come three months after the company turned down rumors of sale of diamond assets. The miner affirmed that retaining the arm would be beneficial for stakeholders.
Earlier in February financial statements, Rio reported deduction of $460m from the value of Argyle, citing delays in the ramp-up of the underground expansion, besides cutting 350 jobs from the underground project. Closely following the event, the company has terminated additional 80 jobs across its Argyle operation.
