Image reduces 50% staff, waiting for Atlas approvals

Image Resources (ASX: IMA) has initiated employee reductions due to continuing delays in environmental approvals for mining at its 100%-owned Atlas mineral sands project in the North Perth Basin of WA.

On 20 September this year, the company notified more than half of its operational employees at its Boonanarring mineral sands project, about 100km north of Perth in WA, that their positions will be made redundant effective 30 September as the project moves to care and maintenance mode.

Image completed mining and processing activities at Boonanaring in August and its original plan was to maintain the operating team during the planned relocation of operations to Atlas, about 100km north of Boonanarring.

Image Resources managing director and chief executive Patrick Mutz says the decision has been difficult to make.

“As intimated in the company’s 2017 Bankable Feasibility Study for the Boonanarring and Atlas projects, Image originally contemplated maintaining its operating team during the proposed relocation of mining and processing operations from Boonanarring to Atlas, particularly as it would enable Image to leverage the valuable operational experience built up from managing site operations at Boonanarring,” he said.

“It is extremely disappointing to have made this difficult decision to let a portion of our operational workforce go due to delays that were, and remain, outside of Image’s control.

“By every measure, the Boonanarring project, from construction and commissioning, through startup and operation, has been a success.

“Credit for the operational success lies predominantly with the operating team and reflects the integrity, dedication, diligence and strong work ethics of the overall operating team.

“We will be doing as much as we can to support the affected employees and indeed all our employees as we work through this difficult process.

“We continue to focus on contemplating the permitting process at Atlas as soon as possible with the aim of rebuilding our operating team numbers when there is more certainty regarding the timing for commencement of construction and mining activities at Atlas.”