100 jobs lost and more to come as mining services wind down

Another mining service company has been hit by the downturn with 100 jobs slashed at Mining Equipment Maintenance in Central Queensland.

90 jobs were slashed at Mining Equipment Maintenance in Rockhampton, while ten jobs were also cut at the company’s MEM Engineering business in Mackay.

Eighteen people are still employed in Mackay but will lose their positions as the business is scaled back. Work is also continuing in Rockhampton as a number of employees remain to complete existing orders.

The two businesses are part of the DPSA Group, a Brisbane-based service and supply group which went into receivership, The Bulletin reported.

Receiver John Greig said the cuts were made as a result of weaker orders from the mining industry.

"Should any of the companies ultimately be placed into liquidation, there is also support available from the Federal Government's Fair Entitlements Guarantee scheme," he said.

"We appreciate this is a difficult time for all affected employees and we will do everything we can to ensure they are kept informed of developments."

Mining service companies continue to bear the brunt of cost-cutting measures across the resource sector.

In June, mining equipment company Hastings Deering cut 200 jobs across its Rockhampton and Mackay sites.

"The Australian resources industry has experienced a significant slowdown as a result of reduced demand for resources, lower commodity prices, falls in productivity and a significant reduction in capital expenditure," the company’s managing director Scott Cameron said at the time.