Freight rail company Aurizon says it has cut an another 103 jobs from its business in recent months, in response to subdued mining sector activity.
A weakening mining sector has led rail operator Aurizon to cut another 100 jobs and take tens of millions of dollars off the value of its assets and coal terminal projects.
The company formerly known as QR National has made 103 redundancies, mainly from its head office, less than two months after announcing plans to cut 480 staff from its Queensland maintenance operations.
Aurizon also said the Dudgeon Point coal terminal and phase two of the Wiggins Island coal terminal, both in Queensland, were not expected to progress in the foreseeable future.
The extra job cuts announced on Wednesday will increase Aurizon’s redundancy costs to between $55 million and $65 million for the 2013/14 financial year.
The deferral of work on the coal terminals will take $40 million to $45 million from its asset values, and Aurizon has also discarded more locomotives and wagons, adding $20 million to $25 million in writedowns.
Chief executive Lance Hockridge said redundancies and asset value reductions come after further reviews of the company’s market outlook.
“While that outlook for the resources sector is still very attractive, it is clearly more subdued,” he said.
“These announcements represent a comprehensive response by the company to those circumstances.”
Aurizon’s new writedowns and impairments total between $130 million and $160 million, before tax.
That will take its impairments to between $352 million and $382 million in 2013/14, which will significantly reduce its annual profit.
The company transports more than 250 million tonnes of commodities each year, connecting mines and farms with ports and export markets.
The 480 job cuts announced in May will come as Aurizon reduces and eventually closes its rail heavy maintenance operations in South Townsville and Redbank.
Aurizon shares dropped four cents to $4.96.