An independent gold mining contractor in Western Australia has sent home roughly two thirds of its fly in fly out workforce after being unable to secure enough diesel to continue normal operations. Blue Cap Mining, which operates at the Devon gold mine near Laverton, has already stood down between 50 and 60 workers, with a similar number expected to follow in coming days.

The company relies on daily diesel supplies to run heavy machinery and transport ore nearly 300 kilometres for processing. Managing Director Ashley Fraser said fuel deliveries are expected to be cut to as little as 30 to 40 per cent of usual volumes, forcing the company to scale back production until supply becomes more reliable.

The shortage follows disruptions to global oil flows after Iran blockaded the Strait of Hormuz, a key shipping route for crude oil and liquefied natural gas. Smaller mining contractors that depend on independent fuel suppliers are being hit hardest, while larger operators have secured more stable access.

Political leaders have warned that prolonged diesel shortages could have serious consequences for Western Australia and the broader national economy, given the resources sector's heavy reliance on fuel. The state government has described the situation as very concerning and pledged to prioritise efforts to secure supply.