About 140 jobs at BHP Billiton in Adelaide are set to go amid warnings more will follow in the wake of crashing commodity prices.
South Australian Treasurer Tom Koutsantonis says the latest cuts bring to 900 the number of jobs lost in the resources sector in SA over the past 12 months and "things will get worse before they get better".
"A lot of resource companies both nationally and internationally are doing it very, very hard," he said.
"Quite frankly, I think BHP are going to have some considerable job losses over the coming months and years."
The latest job losses will come from BHP's support services for its Olympic Dam operations with those to be made redundant told of their fate on Thursday.
It is understood they will be offered packages in excess of Fair Work Act requirements and some may be redeployed to other roles.
BHP said it was continuing to review its operational areas and more job cuts were expected.
"When these are known we will communicate with our employees who are affected quickly and respectfully," the company said in a statement.
Mr Koutsantonis said it was important to remember that BHP remained committed to the Olympic Dam project and continued to employ about 4000 people at Olympic Dam and in Adelaide.
"While these 140 jobs are regrettable, we have to look to the positive," he said.
"It is the largest copper deposit found anywhere in the world in the last 25 years, it is the largest uranium deposit found anywhere in the world in the last 25 years and the largest mining company in the world owns this deposit and is committed to its expansion."
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