South 32 plans job cuts at Groote Eylandt manganese mine amid cost crisis

South 32 announced that its Groote Eylandt manganese mine will likely see redundancies as part of a $129 million cost-reduction drive and a $100 million investment in new water infrastructure. The decision follows repeated flooding, including damage from Tropical Cyclone Megan in March 2024, and a sustained increase of more than 80% in production costs. GEMCO has started formal consultations with staff and contractors who may be affected, emphasizing support and possible redeployment.

Two unions monitoring the situation expect office roles to be cut first, while the Construction, Forestry and Maritime Employees Union is tracking any impact on blue-collar workers. The company says the measures are intended to secure the mine’s long-term viability, even as the local Aboriginal land council projects mining to end within the next decade.