Jobs in South Australia and Western Australia will increase, thanks to the planned investments in an iron ore mine expansion and lithium processing plant development.
CU River Mining Australia plans to invest $800 million to expand the Far North iron ore mine in South Australia, which will enhance production to more than 15 times the current rate by 2021. This will lead to the creation of up to 1,300 jobs, according to CU River managing director Yong Gang Shan.
The immediate need for work on the expansion of mining pits and other developments will cause the increase in local employment. Aside from jobs, suppliers of construction equipment will also benefit from the planned investment.
For instance, mining projects normally use a self-bunded diesel tank for their energy requirements. By using local suppliers for goods and services, the project will support a “flow-on effect in terms of secondary job creation and stabilisation,” according to Shan.
In Western Australia, Chinese company Tianqi Lithium plans to double the annual capacity of the Kwinana lithium processing plant via a $300 million expansion. The project will improve the production capacity to 48,000 tonnes per year from 24,000 tonnes.
It follows the initial phase of construction that began in October 2016. By late 2019, experts expect the second stage of the development to increase permanent jobs at the site by more than 50 percent.
Some 500 people are working on the construction site, and 200 jobs may be needed post-construction, while up 60 more people could be hired especially for operational work.
Mining projects in Australia are a source of employment opportunities for many people. The local economy also benefits from the multimillion investments, while suppliers and contractors also see them as a good way to drum up business.