NZ heavy machinery maintenance company Gough Group has cut nearly 40 staff following OceanaGold’s decision to reduce operations at the Macraes gold mine.
Earlier this week OceanaGold announced it would lay off workers and reduce the mine’s life due to the impact of a prolonged and sustained drop in gold prices.
This decision has now flowed on to its contracts.
Gough Group head Karl Smith has stated that OceanaGold has ended its ‘alliance agreement’ with Gough to repair and maintain its fleet at the mine, according to Stuff.co.nz.
"What it means is our 38-odd people will be disestablished on January 17," Smith told Business Desk.
However the company is aiding the cut workers, looking to move the employees to its currently empty jobs around the country, as Gough expands into other heavy industries such as infrastructure and utilities.
Smith explained that it was aware of OceanaGold’s review and “we have kept those positions open. We have consciously made a decision not to fill them till we could see what of the people from Macraes' mine site would be interested in taking them".