another article in the cairns post

This may have already been posted - just came across


250 Kagara mine workers axed
Damon Guppy
Friday, May 4, 2012
© The Cairns Post


ABOUT 250 mine workers will be made redundant as a result of Kagara's decision to go into voluntary administration.
Most of the staff facing redundancies worked in North Queensland where the mining company has suspended base metal operations at Mt Garnet, Balcooma and Thalanga.
A creditors meeting will be held in Townsville on Wednesday, with dial-in venues arranged in Cairns, to outline plans by administrator Taylor Woodings.
Kagara was placed in voluntary administration on Sunday after suspending its shares from trading on the Australian Stock Exchange last week.
The Perth-based miner had failed to refinance a $40 million debt facility with ANZ.
A spokeswoman for Taylor Woodings said administrators would meet workers at Kagara’s North Queensland sites this week.
"Two hundred and fifty employees will be made redundant," she said.
"The majority of those redundancies occurred over this week.
"The management team has advised the staff personally and further details were provided in writing to staff."
She said the administrator had retained 75 staff members in roles including exploration, project development, environmental management, maintenance, administration and some tradespeople.
Kagara cut 130 jobs in March, blaming falling zinc and copper prices, increased production costs and a strong Australian dollar for its poor outlook and a $49 million first-half loss. Kagara’s total debt was still not known, the spokeswoman said.
"Investigations by administrators are ongoing," she said.
Taylor Woodings will restructure Kagara’s financial arrangements and operations in a bid to save the company.