RIO laying off Contractors: Is this the start of Mining Tax Fallout?

[Garpal Gumnut]

My contacts in Central Queensland tell me that a mine there has with little notice laid off a longterm contractor.

Let us hope it is not.

The economy of Central and North Queensland depends on these contractors.

gg

 

[Eager]

Re: RIO laying off Contractors : Is this the start of Mining Tax Fallout

My contacts in Central Queensland tell me that a mine there has with little notice laid off a longterm contractor.

Let us hope it is not.

The economy of Central and North Queensland depends on these contractors.

gg

You mention the yet-to-be-introduced mining tax in the thread title, but not in your post. Mischievous.

You need to provide detail of this business decision made by the miner. Has the long term contractor been replaced by a different company? Is the miner pulling out altogether? Or maybe the existing long term contractor was unable to provide ongoing services due to the requirements of the miner, who, in fact, want to expand despite the looming mining tax?

 

[Garpal Gumnut]

Re: RIO laying off Contractors : Is this the start of Mining Tax Fallout

You mention the yet-to-be-introduced mining tax in the thread title, but not in your post. Mischievous.

You need to provide detail of this business decision made by the miner. Has the long term contractor been replaced by a different company? Is the miner pulling out altogether? Or maybe the existing long term contractor was unable to provide ongoing services due to the requirements of the miner, who, in fact, want to expand despite the looming mining tax?

The truth is I do not know, but I will check with my contacts in RIO PLC , at Eastbourne Tce.

I am just relating what an employee of a contractor told me, no more no less.

gg

 

[Eager]

That's cool, but I will mention the mischievous word again, simply because it seems like you have jumped to a convenient conclusion.

 

[Garpal Gumnut]

That's cool, but I will mention the mischievous word again, simply because it seems like you have jumped to a convenient conclusion.

And I was conscious of my bias before posting.

However we have a government which has lost the confidence of the people and if I can flag a change in sentiment for the well being of workers and citizens I will do so.

I am not saying that mining companies are laying off contractors, I am reporting a fact that I am aware of.

gg

 

[Eager]

We will agree to watch this space then!

 

[Garpal Gumnut]

We will agree to watch this space then!

No worries.

A worker told me yesterday, and I thought long and hard before posting. I do not know the ins and outs, but usually in NQ we hear about new job opportunities, not contractors being laid off.

It could be a one off.

gg

 

[pixel]

It could be a one off.

... in which case it would be even more mischivous:
It wouldn't be "contractorS", but merely one contractor at one mine, and there would still be no link to the Tax.

As we're aware of your specific bias, neither exaggeration was required.

Mind you, I'm as opposed to the additional tax just as much as you are.

 

[Garpal Gumnut]

... in which case it would be even more mischivous:
It wouldn't be "contractorS", but merely one contractor at one mine, and there would still be no link to the Tax.

As we're aware of your specific bias, neither exaggeration was required.

Mind you, I'm as opposed to the additional tax just as much as you are.

As I said, I profess my bias, however it is more common for me to hear of people getting jobs in the mines rather than losing them.

gg

 

[hangseng]

As I said, I profess my bias, however it is more common for me to hear of people getting jobs in the mines rather than losing them.

gg

You will soon hear of a lot more as remote operation comes in.

Remotely operated and monitored trains and mobile plant with BHPB, RIO and FMG, just to mention a few...tip of the iceberg. They have only really just begun, mining entering a new phase.

Good for the bottom line and shareholders but not operators.

 

[Garpal Gumnut]

You will soon hear of a lot more as remote operation comes in.

Remotely operated and monitored trains and mobile plant with BHPB, RIO and FMG, just to mention a few...tip of the iceberg. They have only really just begun, mining entering a new phase.

Good for the bottom line and shareholders but not operators.

You have a point hangseng, although this layoff to my knowledge was sudden and without a reason that the worker could articulate.

Perhaps it was related to mechanisation, but this person was in an admin/project area.

gg

 

[Glen48]

This is assuming China and India still want Australia shipped over to their countries.
It all takes a long time to crank up and a lot of luck.

 

[breaker]

The contractor F#$%ed up

 

[Smurf1976]

I don't know the specifics of this one, but Rio and BHP are both very obviously exiting their processing businesses prior to the carbon tax.

So the notion that these companies act once a change of government policy is announced rather than waiting for it to actually be implemented is clearly correct as a general principle. It could thus be expected that any mining tax-related changes would be being implemented now, rather than waiting for the tax to actually start.

 

[IFocus]

From insiders at BHP Iron ore, they have $ billions of expansion projects engineering under way....what mining tax?

 

[SuperGlue]

Platinum Australia (PLA) got rid of their contractor recently. Proudctivity went up so does the share price.


http://www.asx.com.au/asxpdf/20120326/pdf/4257q93cthc0pv.pdf

 

[Smurf1976]

A contractor that failed to properly maintain equipment and which did a sub-par job overall. How unusual...

The idea that contractors are the best way to do things seems to be a concept held dear only to those who lack the skills to run such an operation in house. Sure, it makes sense for temporary work but not when it's ongoing and you're left with all the hassles of contracts as well as diluting your own profits through higher than necessary operating expenses (the extra costs of contract administration on both sides, plus profit for the contractor which would otherwise have been retained in house).

Cutting out contractors could just be a sign of management wanting to retain profits rather than give them away.