SOME of the 450 workers at Boggabri coal mine will have to re-apply for their jobs after the Idemitsu-owned operation awarded a new $700 million contract to BGC Contracting.
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The mine is currently operated by Downer Group, but the company was notified in May that its contract would not be renewed once it expired at the end of November.
The news sent shock waves through the community, as the mining union lamented whether current jobs would exist under the Western Australian-based company contract change and if so, whether they’d face the uncertainty of reapplying for that position.
This week, BGC Contracting was awarded the $700m, five-year contract to deliver mining and equipment maintenance services at the Boggabri open-cut coal mine, which will come into effect on December 1.
While Idemitsu confirmed to Fairfax that some of the current staff will be forced to re-apply for their position, BGC CEO Greg Heylen said it made sense for them to recruit locally.
“In addition to being a good corporate citizen, local recruitment will ensure we retain valuable skills and achieve a smooth transition of services, in addition to maintaining the safety of people on the project,” Mr Heylen said.
“We are hopeful that most of the workforce currently employed at Boggabri by Downer will continue to work at the mine with BGC if they wish to apply and are successful in their application.”
Idemitsu Australia Resources chief operating officer Steve Kovac confirmed Idemitsu’s commitment to sourcing the required personnel from the current workforce and from the local Boggabri and surrounding communities.
“The current workforce will have the opportunity to continue working with us at Boggabri Mine into the future, if they choose to be part of the process,” he said.
Boggabri Coal Operations and BGC Contracting will provide details of specific employment opportunities as soon as possible.
Downer was contacted for comment, but did not respond by time of publication.
Gunnedah Shire Council mayor Jamie Chaffey responds
RE-EMPLOYING residents who already work at the Boggabri coal mine is the wish of Gunnedah Shire Council mayor Jamie Chaffey in the interest of the local economy.
It comes on the back of the Idemitsu-owned mine switching its operators from Downer Group to BGC Contracting under a $700 million contract change come December 1.
“There’s no question that the extractive industry in and around the Gunnedah LGA plays a strong part in our economy,” Cr Chaffey said.
“It’s playing a very strong part in our economy.
“The fact that this particular mine has continued their project and if looking at the viability of it means changing contracts, it can only be a positive thing for the Gunnedah region.
“It would be our wish that anyone who works at the mine that their job is stable, their employment is stable.”
Cr Chaffey said the mining industry is one of two major ones to contribute to the shire’s economy.
He hoped current staff would be re-employed under the contract change.
“I will be very surprised if all of those people are not required,” he said.
“As far as council goes, it’s important for our economy that people who reside in the Gunnedah Shire Council area are gainfully employed and their wages are re-invested into the local economy.
“Agriculture and the extractive industry are the backbones of our economy.”