HAMILTON'S been hit by the loss of 22 jobs with the demise of its Holden and Mitsubishi dealerships.

The city is also waiting for news of likely job losses at the Iluka mineral separation plant on its outskirts.

Liquidator Greg Andrews from insolvency accountancy GS Andrew Advisory said the freezing of the Southern Grampians Auto Group bank account left shareholders no alternative but to put the company into liquidation.

Mr Andrews said unsecured creditors and business losses were being determined.

"It will be in excess of $1 million."

He was very confident employee entitlements of at least $140,000 would be paid.

Mr Andrews said company directors had put hundreds of thousands of dollars into the business, but this had been eroded by losses over the past four to five years.

"There were no funds available to pay wages."

SGAG director Andrew Rau has not returned calls for comment.

Iluka Resources Limited this week announced its Hamilton mineral separation plant would operate on a 55 per cent utilisation basis, on a one month on, one month off basis as part of measures to curtail production and reduce costs in a low sales period.

The Douglas mining operation north-west of Hamilton closed last year.

"A small number of permanent employee positions will be made redundant in the Murray Basin as a result of the announced production slow down, but the exact number is pending the outcome of an internal review of resources," corporate affairs manager Carly France said.

"A small number of contractors may also be affected.

"Affected employees will be offered a comprehensive range of assistance arrangements," she said.

"At this stage I can't confirm the exact number of employees which will be affected as this is yet to be confirmed but, as mentioned, this number is expected to be small. Employees on site will be informed directly as soon as this is confirmed."  

"It is uncertain at this stage how long the plant will operate at a reduced rate but this will be reviewed when market conditions warrant."