Central Queensland magnesia manufacturer QMAG cites increasing cost pressures as sparking ‘adjustments’ to its organisational structure.

The business has shed 13 people in the form of redundancies, according to a Central Queensland Today report this week, although people commenting on social media indicated the figure was higher and included contractors.

QMAG‘s plant at Parkhurst, Rockhampton, takes magnesite ore for processing into various magnesia products. The business – which is part of the Refratechnik group of companies – also includes the Kunwarara mine, which yields about 2.0 million-plus tonnes of magnesite ore per year. 

In a written statement, QMAG said it was taking proactive steps to ensure the long-term strength and sustainability of the business on the back of a recent review.

‘Like many organisations across Australia, we are managing increasing cost pressures, including higher gas and energy prices, fuel and supply chain costs, and broader freight challenges,’ it stated.

‘To continue operating efficiently and responsibly, we are proposing a number of adjustments to our organisational structure to better align with the current global market climate. These steps form part of a broader plan to position QMAG for stability and future growth.

‘While change is never easy, these measures reflect our commitment to managing the business responsibly and
maintaining continuity for our people, customers, contractors, suppliers, and broader stakeholders.

‘Our priority throughout this period remains the wellbeing of our people and the ongoing reliability of our operations.’

Peak economic development organisation Capricorn Enterprise said it was no surprise to see QMAG’s reducing its 250-300 workforce by less than 15 full-time employees.

“It is not uncommon for companies like QMAG to make organisational structural changes to better align with national and global influences, often beyond their control,” Capricorn Enterprise chief executive officer Mary Carroll said.

“As the cost of doing business in this country continues to be challenging, government policy and regulation, particularly in geopolitical matters will continue to impact upon the day-to-day operations and responses by industry.

“There are a significant number of job vacancies currently in the Rockhampton region and broader Central Queensland within a number of sectors, including the mining and resources sector, so there are options for those personally affected whose skills are transferrable.”