As a result of lower coal prices (43% decline in thermal coal prices) and over supply in the coal market, Glencore’s Collinsville coal mine, in north Queensland, is operating at a financial loss. It has been under financial pressure for most of 2015.
The company has indicated the current coal market is the most difficult in the industry’s recent history, as reported by ABC.
Glencore therefore has decided to take action by reducing jobs and decreasing operations.
The Australian mining giant has reported it is set to idle the mine’s operations for three weeks later in December, according to Reuters. It will also limit next year’s production in light of declining thermal coal prices, despite being one of the world’s largest thermal coal exporters.
Following earlier job cuts in May in attempts to reduce coal production at Collinsville, Glencore will cut a further 180 of the remaining 230 jobs at the north Queensland coal mine, laying off 80% of staff. The majority of lay-offs will be implemented by March 2016. The company has said there will be support services in place for employees that will be affected by the job cuts.
Edited from various sources by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/coal/07122015/glencore-cutting-jobs-and-restricting-production-at-collinsville-coal-mine-3246/
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