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Pay cuts on the table at Arrium

Arrium operates in the mining and mining consumables manufacturing sectors.

Arrium’s administrators are reportedly seeking a 17% pay cut in negotiations with workers at the failed company’s Whyalla steelworks.

According to a report in The Australian, administrators KordaMentha are hoping to secure the pay cut, and lift iron ore exports by up to 3mtpa to make the company a more attractive asset for sale.

KordaMentha on Monday reportedly kicked off enterprise agreement talks with the Australian Workers Union.

The administrator is looking to cut a reported $25m to $30m figure off the annual wage bill at the Whyalla site.

Unions are said to be prepared to discuss potential wage cuts.

The Australian also reports the administrator is seeking a loan to pay an Irish contractor to build two iron ore upgrading facilities at the mines near Whyalla, so supply to the port town can be boosted from 7mtpa to 10mtpa.

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