SYDNEY, April 4 (Reuters) - Australia's Fortescue Metals Group Ltd (FMG) said on Monday it would take over operations at its Christmas Creek mine from September, after an outsourcing contract expires with mining services company Downer EDI Ltd (DOW).
Fortescue, the world's No. 4 iron ore producer, is among several large Australian miners under pressure to slash overheads as the price of the steel-making ingredient hovers around a quarter of its $200-a-tonne highs.
"Adoption of an owner-operator model will further reduce Fortescue's costs through ongoing improvement of the efficiency and productivity of our Christmas Creek mining operations," Fortescue Chief Executive Officer Nev Power said in a statement.
Downer confirmed on Monday that it was handing over operations at the mine in the state of Western Australia, but said it did not expect the change to affect its 2016 financial results.
Mining services firms like Downer have been among the hardest hit by a rapid downturn following a two-decade resources boom. The company said it had been operating at Christmas Creek since 2010.
Fortescue announced the move in a statement to the Australian Securities Exchange after the close of trading on Monday.
News: Australia's Fortescue Metals cuts outsourcer Downer EDI amid iron ore slump
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