Colorado-based Newmont Mining has plans to axe 120 jobs at its Carlin mining operation in Nevada following a reduction in the life span of one mine and the suspension of operations at another due to a collapsed wall.
Newmont informed its workforce and union about the cuts on 7 January, reported Reuters.
The company has begun notifying the impacted employees. The layoffs are scheduled to take effect on 9 March.
In its third-quarter results, the firm stated it was taking a write-down because of a change to the plan of the Emigrant open-pit mine in Carlin, which would lead to a reduction in its life span.
The original life span of the open-pit mine was 14 years. The mine began its operations in 2012.
Newmont Mining, however, did not specify the reason to change the plan at the Emigrant mine.
Newmont Mining spokesperson Omar Jabara said the plans could change due to various factors including gold price and processing costs.
Newmont also reduced the total production guidance for its operations in North America for 2018, following a 12% dip in gold production at Carlin in the quarter ended 30 September compared to a year earlier.
Carlin is the biggest of Newmont’s four gold mining operations in Nevada.
Part of the operations at the Gold Quarry open-pit mine in Carlin were suspended following a wall collapse.
A total of about 5,000 people, including contractors, are hired by the mining firm in Nevada, reported The Associated Press. The firm, however, does not plan for any more layoffs at Carlin.