ABC reported that Rio Tinto job cuts at its Argyle Diamond mine are part of a long term plan and not connected with the economic downturn.

Workers were said that 87 company employees and 34 contractors will lose their jobs at the East Kimberley operation.

Rio has guaranteed alternative employment for all its workers, in the form of fly-in, fly-out jobs at its Pilbara iron ore mines.

Mr Kevin McLeish Chief operations manager of Argyle said that the cuts are necessary for the mine's long term future.

He said that "This was always part of our transition from open-cut mining to underground mining. Essentially our new underground mine will be state of the art and automated and therefore need significantly less people than an open-pit mine."

(Sourced from ABC.Net)