Here is the article from the paper
Argyle diamond mine cuts jobs
Ben Sharples, AAP
January 14, 2009 11:48am
RIO Tinto Ltd will cut production and reduce the workforce at its Argyle diamond mine in WA, shedding more than 200 jobs.
The global miner said today that an underground expansion would be ``slowed to only critical development activities'', resulting in a reduction in the workforce and demobilisation of contractors.
``Given global market conditions, we will also reduce diamond production by taking an extended maintenance shutdown of the diamond processing facilities for up to three months, commencing in March,'' Argyle Diamonds chief operating officer Kevin McLeish said.
The $US1.5 billion ($A2.26 billion) expansion was expected to be completed by December 2010 and would extend the life of the mine to 2018.
Commodity prices have sunk amid the global economic crisis as demand has slowed, with many producers forced to cut output and shed jobs to remain competitive.
Rio Tinto is planning to axe about 14,000 jobs worldwide and reduce capital expenditure by up to $US5 billion ($A7.55 billion) this calendar year to help conserve cashflow and reduce debt.
The company declined to comment on the job losses at Argyle but it is understood that about 60 to 70 positions will be axed.
``While there will be some redundancies unfortunately, every effort is being made to minimise through redeployment,'' spokesman Gervase Greene told AAP.
Macmahon Holdings Ltd, the primary contractor at Argyle since November 2006, said Rio Tinto's move would cost it contract revenue and force about 200 redundancies.
Macmahon's revenue is expected to fall from about $80 million to just under $20 million per year until full development at the site restart.
Argyle is about 2500km north-east of Perth and has an average annual output of 20 million carats, producing 90 per cent of the world's pink diamonds.
``We remain convinced that the diamond business has excellent long-term prospects,'' Mr McLeish said.
Rio Tinto this week suspended an underground expansion at the Northparkes mine in central-western NSW, deferred an automated train program in WA and postponed an expansion to its Corumba iron ore mine in Brazil.
The suspension at Northparkes resulted in the loss of 346 jobs.
Rio Tinto shares gained 26 cents to $40.61.