A significant resources employer in Western Australia’s north has announced 450 redundancies, with a remote mine site closing due to safety concerns.
Mount Gibson Iron will wind down operations at its Koolan Island mine after a “significant” rockfall on the eastern footwall of the site’s main pit last week.
The island, which is in the Buccaneer Archipelago off the northern Kimberley coast, told the ASX on Friday morning of its decision to close.
Prior to the incident, production at Koolan Island had been scheduled to conclude about September 2026.
In a statement, Mount Gibson said an “intensive assessment” had determined remediating the rockfall-affected area and safely resuming mining was not viable.
About 75 employees will remain on site to continue processing ore and accelerate rehabilitation works, while about 250 staff and 200 contractor roles will be made redundant.
Koolan Island mine has been closed West Australia’s far north. (ABC Kimberley: Erin Parke)
Safety priority
Mount Gibson Iron chief executive Peter Kerr said the decision was made with safety as the company’s highest priority.
“It is extremely disappointing for the company and its people that we must prematurely ramp down operations at Koolan Island, however, the physical safety of our personnel is our prime consideration,” he said.
“We will now be working closely with our site team, the Dambimangari traditional owners and other relevant stakeholders to responsibly manage the transition and preserve a strong legacy in the region.”
The company said all employee entitlements would be paid in full and support services provided to affected personnel.
The Koolan Island mine is one of Australia’s oldest iron ore operations.
Mount Gibson acquired and recommissioned the former BHP site, with shipments commencing in 2007.
Mining was interrupted in late 2014 when the main pit flooded, though operations continued in nearby satellite pits until early 2016.
Production and sales of high-grade hematite — the primary source of iron used in steelmaking — recommenced in April 2019 following a two-year seawall reconstruction and mine refurbishment program.
Mr Kerr said the Koolan Island decision would not impact the company’s recently announced acquisition of a 50 per cent interest in the Central Tanami Gold Project.
“We’re looking to close that acquisition as soon as we can, and if anything, the early cessation at Koolan prompts us to accelerate the work as quickly as we can,” he said.