SYDNEY, Jan. 31 (Xinhua) -- Australian miner Iluka Resources announced Tuesday that it plans to shelve 90 jobs, due to a projected 2016 full year net loss after tax of 220 to 230 million Australian dollars.
The mineral sands miner blames the loss on impairments and charges, stemming from its 375 million Australian dollar takeover of Sierra Rutile Limited, and idle and surplus equipment from its now shutdown Murray Basin operations.
Iluka reported a 27 percent reduction in expected ore reserves, taking their projections down from 23 million tonnes of heavy mineral, to 16.7 million tonnes.
Iluka continues to hold on to a net debt position of 506 million Australian dollars, as of Dec. 31, 2016.
Revenue for the miner fell 13.6 percent over the course of the reporting year, to 708.5 million Australian dollars, as a result of lower zircon and ilmenite sales, and prices.
Tom O'Leary, managing Director of Iluka said it was necessary to "write-down some assets" in the Murray Basin, and the results factor in the closing of sites in Virginia, and stressed cuts needed to be made to improve profitability.
"This has resulted in us making the difficult decision to make - 90 roles redundant, and a number of exploration and other activities have ceased or expenditure has been reduced" O'Leary said. (1 Australian dollar equals to 0.76 U.S. dollars)
