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Portfolio: Lihir Gold bought the mine in 2007 and since then it has fallen well short of production forecasts (Perth Mint)
In Victoria, the Australian Workers Union (AWU) says the planned sale of the Ballarat gold mine is another blow to the city's workers.
Lihir Gold announced yesterday that it is selling the Ballarat mine because it is not producing enough gold to fit the company's portfolio of large-scale operations.
Two hundred workers were laid off in April.
Now another 200 workers will be made redundant, mostly permanent employees.
The AWU's state secretary, Cesar Melhem, says the workforce is not unionised.
"Lihir management have managed under WorkChoices to make sure that the AWU has been locked out from representing any workers on site," he said.
He says it is disappointing for a city that has lost about 800 jobs in the past year.
"With Lihir Gold, it was seen as the white knight in relation to Ballarat," he said.
The AWU says production forecasts at the Ballarat gold mine have been unrealistic.
Lihir Gold bought the Ballarat mine in 2007 and since then it has fallen well short of production forecasts.
The company says the mine is better suited to a smaller operator.
Lihir Gold spokesman Peter Smith says making two-thirds of the company's workers redundant is a tough decision.
"Unfortunately we're in a position today where we'll be working through this with our staff," he said.
Mr Smith says he hopes the mine will be sold by the end of the year.
"We'll retain about 100 people on site to cover all of the core competencies of the operation," he said.
Lihir Gold has reduced its underground activity as of yesterday.
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