ONE of the Territory's biggest mining companies laid off more than 50 workers yesterday.

Manganese miner Gemco blamed the economic slowdown in China.

Thirty workers and 22 short-term contractors were affected.

The move follows an announcement last month that production at the Groote Eylandt mine would be cut back by 21 per cent this year. Gemco, which employs 1100 workers, exports all of its production from the island's Milner Bay port.

Meanwhile, Compass Resources has announced there will be further cost-cutting at the Brown's copper mine near Batchelor.

It received a $72million cash injection from Chinese interests in September but reported a loss of $13.2million in the last financial year.