Iron ore mine dispute leaves workers in limbo at Buzzard site in SA's far north

About 200 workers at an iron ore mine in SA's far north are facing uncertain futures amid a financial dispute between the project's owner and a major on-site contractor, the ABC understands.

news iview listen Loading ABC News News Home Iron ore mine dispute leaves workers in limbo at Buzzard site in SA's far north Share Share article Iron ore mine dispute leaves workers in limbo at Buzzard site in SA's far north By James Wakelin Workers at an iron ore mine in SA's far north are facing uncertain futures amid a financial dispute between project owner Central Iron and contractor Agile Mining Services.

In a letter to staff, Agile said it had made the decision to shut down operations at the Buzzard mine site south of Coober Pedy.

The state's mining minister described the situation as an "internal dispute" that did not reflect on the viability of the mine.

Link copied Share Share article About 200 jobs at an iron ore mine in South Australia's far north are in limbo amid a financial dispute between the project's owner and a major onsite contractor, the ABC understands.

In a letter to staff seen by ABC News, contractor Agile Mining Services said work would be shut down at the Buzzard mine site south of Coober Pedy.

The project is owned by Central Iron — a subsidiary of Peak Iron, whose website states the Buzzard mine extracts high-grade hematite for shipment.

In the letter, Agile told workers to use leave if available and to expect further advice once a "commercial position" had been resolved.

"Agile is therefore shutting down site operations and directing its own personnel to cease normal duties, with employees to utilise available annual leave … where applicable," it stated.

The situation comes amid uncertainty about steelmaking in SA, following the revelation that more than 600 jobs will go at the Whyalla steelworks and associated industries .

But Mining Minister Tom Koutsantonis said the situation at the Buzzard site was an "internal dispute" that did not reflect on the mine itself.

"This is not about them not being a viable mine or there not being the work — this is a dispute about cost," he said.