$10 million cut out of Yarwun alumina refinery site

RIO Tinto is losing money from Gladstone's alumina refineries and it's the contractors who are being squeezed to turn that around.

Yarwun and Queensland Alumina Limited Contractors and suppliers will be worse off about $10 million through a re-tendering process that will look to make a saving on 750,000 hours (or around 90% of total contract hours).

We understand there have been tens of contractors already laid off, if not more, although nor the company or individual contractors were willing to discuss the details of this.

The company has confirmed a re-tendering process is underway and that they are delaying payments to current contractors; extending their payments from 30 days to 60.

This is all only part of a $300 million cost cutting effort across the Rio Tinto aluminium group worldwide announced to the London Metal Exchange this week by chief executive Alf Barrios (pictured).

Speaking to investors, he said Yarwun and QAL were continuing to lose money but they would "aggressively drive costs out of the business".

The price of aluminium is being driven down by an oversupply from China.

But Rio Tinto does estimate prices will increase mid-next year as Chinese production slows down and the country runs out of quality bauxite.

This paper spoke to the manager of a local contract firm who works for both QAL and Yarwun - he didn't want us to name him for fear he would lose his job - who said his employees were nervous but that he understood the need for drastic measures.

"We're happy with the reduction. I'm from Gladstone and if we take the two big players out of the town the impact would be quite severe," the manager said.

"I totally understand that it is out of their control."

He said his staff were nervous about job security but he was more nervous about the town. "I would like to know how many wages they have paid, children they have put through uni and homes they have put up," he said. "They have been great community partners since 1966 and it upsets me when people complain."

Rio Tinto wouldn't go into the expected cuts to contractors at QAL but were positive with the new mine in Weipa that the company would stay in the aluminium business for the long term as long as the refineries were profitable.

Topics:  gladstone gladstone industry mining rio tinto yarwun

Gladstone drink drivers named and shamed

OUT IN FORCE: Police are ramping up their presence this Christmas.

It has been months since Gladstone has seen numbers this high.

Young Gladstone woman attempts court escape

Noosa will gather to start a conversation on domestic violence.

Woman makes failed bid for freedom from a Gladstone court dock.

Queensland's Country Women's Association to admit men

MEN can now officially support the QCWA.

Local Partners

Jake left broken-hearted by Bachelorette break-up

Jake Ellis is one of the final three bachelors on The Bachelorette.

GEORGIA chooses Lee and Matty J as her final two suitors.

MOVIE REVIEW: Doctor Strange is out there in a good way

Benedict Cumberbatch in a scene from the movie Doctor Strange.

MARVEL'S new superhero takes viewers along on his mind trip.

MOVIE REVIEW: Jack Reacher sequel falls flat

Tom Cruise in a scene from the movie Jack Reacher: Never Go Back.

THE film's title Never Go Back should serve as a warning to fans.

The Bachelor contestants find love with each other

Former Bachelor contestants Megan Marx and Tiffany Scanlon have confirmed their relationship on social media.

MEGAN Marx and Tiffany Scanlon confirm relationship on Instagram.

Liam Payne wants to wed Cheryl Fernandez-Versini

Cheryl Fernandez-Versini and Liam Payne

Liam Payne reportedly wants to marry Cheryl Fernandez-Versini

Bindi Irwin 'honoured' to make MAXIM HOT 100 list

Wildlife Warrior named among Australia's most beautiful women

Bank reclaims Goondoon St complex plan, places on the market

Multi-million dollar development plan up for sale.

MULTI-MILLION dollar plan for Goondoon St complex on the market.

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Coles to pay new owner of Tannum servo $320K

UP FOR GRABS: Expressions of interest in Tannum's new service station, which will house the new Coles Express, closed this month.

INVESTORS bid for new Tannum service station under construction.

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

How to fit 100,000 new homes on the Coast

Property, real estate, housing, suburb,  August 2016

Fitting 2m extra people in south-east Qld in 25 years a balance

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available