A number of employees and contractors working at Broken Hill's largest mining company may be out of a job due to a staff restructure in one of its mines.
Perilya Broken Hill Ltd has had several different ore operations around the Silver City since 2002, and currently employs around 480 full-time staff.
The ABC understands the company plans to reshape operations at the North Mine.
"We are currently going through a process that will see our Broken Hill operations restructured," a company spokesperson said.
The full extent of the job losses is not yet known, according to the spokesperson.
"Regrettably, employee numbers including contractors will be decreased," they said.
"We are doing this to ensure the ongoing viability of our business in Broken Hill."
The spokesperson said the company was in discussions with employees and contractors to finalise the specific details of the restructure.
"The aim and challenge will be to make the re-sized Broken Hill operations viable for the future," they said.
'Not so much of a surprise'
The move follows similar restructures at the company due to low metal prices.
Between 90 and 100 employees were made redundant in 2016 and more than 400 were axed in 2008.
The job losses are one of several factors blamed for Broken Hill's population declining in recent decades to almost half of what it once was.
It is understood a combination of increased costs and the company being unable to meet its production targets led to the latest restructure.
Broken Hill City Council Mayor Tom Kennedy said he understood the possible job losses would be minimal compared to the previous restructures.
"The reality is this is going to be a limited amount of people, if any, because there is a shortage of positions across Perilya operations at both Potosi and the southern operations," he said.
"It will have nowhere near the dramatic effect that past restructures have had."
"[It's] not so much a surprise because like everything, there's a shortage of workers all over Broken Hill in all industries."
According to a company spokesperson, power costs have blown out by an extra $1 million a month.
The restructure is believed to include operations at the North Mine, Potosi and the southern mines.
Contractor and Perilya employee positions are under review.
The details of the restructure are due to be finalised by mid-May and the implementation completed by the month's end.
