Aussie FIFO workers sent home from major mine site in worrying sign of the wider effects of a fuel crisis amid the ongoing Iran conflict
- Blue Cap Mining has halted operations
- It doesn't have enough diesel to run trucks
- READ MORE: Aussies could be forced to ration petrol if the Iran war continues
An independent gold mining company has been forced to send two-thirds of its fly-in, fly-out workforce home due to ongoing fuel supply issues.
Privately owned mining contractor Blue Cap Mining on Tuesday morning revealed it was unable to run machinery vital to its mining operations as there wasn't enough diesel.
Blue Cap Mining employs around 180 fly-in, fly-out workers and had to send between 50 and 60 people home over the weekend.
Another 50 to 60 workers will be affected over the next few days, Blue Cap's Managing Director, Ashley Fraser, told ABC Radio Perth.
The contractor operates in the Devon gold mine near Laverton, about 900 kilometres north-east of Perth.
Ore is usually trucked almost 300km from the pit for processing but a lack of diesel has halted normal operations.
Blue Cap projects around Western Australia use around 15,000 litres of fuel a day.
Australia's entire resources sector chews through almost 10billion litres of diesel every year.
Blue Cap Mining (above) has sent two-thirds of its of its FIFO workforce to go home this week due to ongoing fuel supply issues
Australia has experienced fear for its fuel supply since the Strait of Hormuz was blocked by Iran
One large haul truck alone could use a million litres of diesel in just one year.
Concerns about Australia's fuel supply stem from the ongoing conflict in the Middle East.
Iran blockaded the Strait of Hormuz, through which 20 per cent of the world's total crude oil and liquid natural gas travels.
Smaller contractors - like Blue Cap - rely on independent suppliers for diesel.
Those suppliers are far down the 'pecking order', meaning Blue Cap and others are unlikely to have access to their usual supply of fuel.
Bigger mining operations have been given better surety of fuel supply.
'We'll be dialling down our production until we can get some surety around what that fuel supply looks like,' Mr Fraser said.
'The feedback that we're getting is, don't expect more than 30 to 40 per cent of the fuel you normally get once or twice a week.'
Opposition Leader Basil Zempilas (above) said of the fuel shortage for the resources sector: 'Western Australia is the engine room of the nation's economy and that engine runs on diesel'
Mr Fraser added the industry wasn't a 'level playing field' and impacts would likely play out similar to the Covid pandemic, in terms of effects on the wider economy.
Opposition Leader Basil Zempilas agreed, noting the problems at Blue Cap were the first indication of a larger issue.
He urged the government to prioritise fixing the supply of diesel to essential industries.
'Western Australia is the engine room of the nation's economy and that engine runs on diesel,' Zempilas said.
'So any shortages of diesel fuel are going to greatly impact Western Australia and Australia's economy more broadly.'
WA Premier Roger Cook admitted the situation was 'very concerning'.
He said his government would work to identify shortages and ensure fuel supply 'as a matter of priority'.
Cook also promised to look into Blue Cap's diesel issues.
