About 3,500 mining jobs would be lost, following the going into administration of Australian miner Bluestone Global. The company, listed in the Australian Stock Exchange, said in a statement on Tuesday that it failed to secure shareholder support to fix its balance sheet by merging with other companies.
The majority of its subsidiaries, such as hire firm Resco which provides mining services in the New South Wales Hunter Valley region, would be liquidated.
Craig Shepard, the appointed liquidator, said it is trying to find new work for the affected 3,500 contract workers and 180 full-time employees of Bluestone Global and its subsidiaries. He said the nature of the on-hire employment contracts of the 3,500 would make it easier for them to be re-engaged to perform the same tasks.
KordaMentha, the appointed administrator, said it is working on the payment of all affected workers' entitlements such as unpaid salaries and mandated severance payments. Prior to Bluestone's going into administration, it had a market value of about $5 million.
The administrator had struck a deal on Tuesday with Skilled Engineering and WorkPac to provide employment to 95 per cent of 450 ResCo jobs.