Esperance Port faces job losses amid decline in iron ore, nickel, and lithium exports
In Western Australia's south, Esperance Port faces a challenging period as it grapples with anticipated job losses due to recent setbacks in the state’s mining sector. The port, a crucial node in the region’s economy, is bracing for a significant reduction in its workforce following the announcement of major closures and project shutdowns by key mining companies.
The port authority has begun seeking expressions of interest for voluntary redundancies amid growing concerns about job security among its staff. While it is still early to pinpoint exact numbers, it is understood that around 30 full-time equivalent operational roles could be at risk. This development follows a series of blows to the local mining sector, including the shutdowns of significant operations that have long been key to the port's cargo volume.
The closures affecting Esperance Port's operations include First Quantum Minerals' Ravensthorpe Nickel Operation and Mineral Resources' Yilgarn iron ore project. Adding to the port’s woes, Arcadium Lithium announced last week that its Mt Cattlin mine near Ravensthorpe would also be mothballed. The combined impact of these closures is expected to significantly reduce the port's export volumes in 2025, creating a ripple effect that will affect not only the port’s staff but also the wider community dependent on its economic activity.
Keith Wilks, Chief Executive of Southern Ports, acknowledged the challenging times ahead, stating, “It is clear that our labour demand in operations and maintenance will need to reduce in line with our adjusted trade volumes as we prepare for a new trade outlook in 2025.” The port authority is committed to working closely with its workforce and the Maritime Union of Australia to navigate this transition, aiming to find a way forward amid the shifting economic landscape.
Southern Ports, which employs around 150 staff, is the second-largest employer in the Esperance region. The port’s role in the local economy is significant, with its annual report revealing that in 2023, it exported approximately 12.6 million tonnes of commodities, more than half of which were iron ore. The reduction in export volumes due to the mining project closures will inevitably impact the port's operational capacity and workforce.
Jeff Cassar, Assistant Branch Secretary of the Maritime Union of Australia's WA branch, has highlighted the resilience of the Esperance Port workers. Reflecting on the dedication shown by the workforce, particularly during the COVID-19 pandemic, Cassar stated, “I've watched these workers push through enormous difficulty to ensure trade continued, as requested by the [former] premier. There’s a toughness amongst these workers that inspires.”
Cassar has called on the state government to offer "modest concessions" to junior mining companies, which could potentially help mitigate the impact of the closures. He emphasised that these companies possess sufficient mineral ore deposits to maintain high export volumes for decades. According to Cassar, this could provide a lifeline for the port and the broader community, suggesting that there is an opportunity for growth and recovery if the right support is provided.
Ports Minister David Michael has assured that the state government is actively engaged in discussions with the junior iron ore sector to explore new trade opportunities. “We appreciate the concern of the Maritime Union of Australia for its members at the Port of Esperance and share their interest in developing new trade growth,” Michael commented.