About 60 positions will be made redundant, mainly at the Hamilton mineral separation plant.

The Mail-Times understands that Iluka does not have many employees that live in the Wimmera. 

The $3 billion company announced on Tuesday that work will cease at its sites south of Horsham and at Hamilton until a new mine site is opened in 2019 to provide raw material.

Iluka has ceased mining for ore concentrate in Victoria and at its Jacinth-Ambrosia site in South Australia. 

Iluka's Victorian operations produce titanium, zircon and rutile for use in manufacturing paints, plastics, ceramic, tiles and metal alloys.

The company said in a statement that it did not expect its new mine at Balranald, NSW to be operational before 2019.

“Iluka concluded mining operations in Victoria in March 2015,” the statement said.

“Since that time, the Hamilton plant has processed concentrate sourced predominantly from Victorian stockpiles, supplemented with concentrate transported by road, rail and sea from the company’s Jacinth-Ambrosia mine in South Australia. 

“Under this arrangement, Victorian stockpiles were scheduled to be exhausted in June 2018.”

Iluka stated that the company had decided to stop processing South Australian ore in Hamilton to have on transport and handling costs.

“As a result, the Victorian stockpiles will now be exhausted in October 2017,” the company stated.

Iluka fought a legal battle with Horsham Rural City Council over a rejection of planning permission for it to continue and expand its waste byproducts disposal operation at its Douglas former mine site.

The site is located about 70 kilometres south-west of Horsham and receives waste ore from the Hamilton Mineral Separation plant. 

Horsham councillors voted narrowly against Iluka’s application in June.

Iluka appealed the decision at the Victorian Civil and Administrative Tribunal, which overturned the rejection and granted a permit in February.

Some landowners near the Douglas site, as part of the Kanagulk Landcare Group, spent years fighting against the waste disposal expansion.

The landowners claimed that low and very low level radioactive waste being buried at the site would contaminate groundwater.

Horsham Rural City Council spent $100,000 on legal expenses while defending its decision.

Iluka will continue to use the Douglas site until October, and intends to reopen the site in 2019.

Iluka chief operating officer, Steve Wickham said the company intended to resume work in Hamilton when a NSW mine started producing ore concentrate.

“This is a commercial decision by Iluka and not the result of any policy settings or perceived prevailing economic conditions in Victoria,” he said.

“The company regularly evaluates its operational settings to ensure sustainable financial outcomes. 

“Since 2012, both the Hamilton and Narngulu, Western Australia plants have been running at low utilisation levels of between 50 and 60 per cent.

“The company acknowledges that this will be a difficult time for affected employees and will provide whatever assistance it can, including counselling, redeployment and employment placement support.”

The Mail-Times understands that Iluka’s decision was not influenced by the impending closure of the Hazelwood Power Station, which supplies up to 25 per cent of the state’s power. 

Mr Wickham said Iluka’s rehabilitation of former mine sites in Victoria is not affected by the suspension of operations at Hamilton and will continue in line with long-term planning arrangements.

Iluka’s share price increased by 3.57 per cent to $7.25 after the Hamilton plant decision was announced.

Iluka posted a $230 million loss on revenue of $708m in 2016 due to lower sales and asset impairments.

State Member for Lowan Emma Kealy said the decision was extremely disappointing for Iluka workers and their families, contractors and the Hamilton community.

“The loss of 60 direct jobs and many more indirect jobs is devastating for the Hamilton community, and is a hit that we can ill afford,” she said.

“I implore Premier Daniel Andrews to come to Hamilton and speak with affected workers and their families to ensure that every option to retain these jobs or create suitable alternative local employment opportunities is investigated.

“Under the Andrews Labor Government we have seen unemployment in rural Victoria continue to skyrocket, with recent major job losses in the Latrobe Valley, Heyfield, and now Hamilton.”

Ms Kealy Called on the state government to provide a support package for affected workers and the Hamilton region, similar to the $260m package provided for the Latrobe Valley.

Federal Member for Wannon Dan Tehan said he was bitterly disappointed at the announcement.

“I feel for all the Hamilton employees and their families and the contractors who will be impacted by the suspension of works,” he said. 

“This purely commercial decision by Iluka impacts not only the Hamilton employees and their families but also our wider community.

“It is important as a community that we rally together during this challenging period. I will be working with the Southern Grampians Shire Council, the State Government and Iluka to try and minimise the impact of this suspension.”