Pasminco workers walk off job

Almost 100 workers at the Elura zinc mine in eastern Australia have gone on strike over concerns of lost jobs and benefits if the operation is sold.

The mine’s owner, Pasminco, is in talks to sell the mine to fellow Australian firm Consolidated Broken Hill as part of a restructuring to get rid of nearly US$1.8 billion in debt.

Production at the mine, which employs 250 workers, is unaffected by the action, a Pasminco spokesman says.

“The workers are desperate to learn [about] their entitlements, their redundancy payments, and the timing of any sale,” says Australian Workers Union President Mick Madden.

At presstime, Pasminco had not received a request from the union to discuss job losses or employee entitlements.

The mine yields produces 85,000 tonnes zinc and 45,000 tonnes lead annually.

Pasminco, once the world’s largest zinc producer, filed for the equivalent of bankruptcy protection in November 2001 after plunging zinc prices and bad hedges left it unable to pay debts.

The company has already sold its Broken Hill mine to Perth-based Perilya.