Chemicals maker Orica is cutting jobs at Gladstone in Queensland in response to falling demand for explosives from the mining sector.
The company is cutting the capacity of its Yarwun site due to an oversupply of ammonium nitrate, which is used to make explosives used in the mining and quarry industries.
About 29 of the current workforce of 220 are expected to lose their jobs.
"Today, we have begun consulting with our employees to understand and address any impacts on the workforce," Yarwun general manager Dave Buick said.
"We expect there will be some impact on staffing levels from this decision."
Mr Buick said the company remained committed to the operation of the Yarwun facility.
The operations are located on the central Queensland coast and have been in operation for 25 years, with a capacity to produce more than 500,000 tonnes of ammonium nitrate each year.
That capacity is expected to be reduced to about 280,000 tonnes.
"Orica is operating in a highly competitive market in which supply of ammonium nitrate is higher than demand levels, and we need to pursue strategies that secure the long-term viability of the business," Mr Buick said.
Share
