Glencore plans to reduce Australian production by 15 million t in 2015, in order to more closely align output with current customer demand.
The company follows rivals such as Peabody Energy Corp. in cutting output in order to counter the hit from low coal prices.
“Production initiatives will occur at a number of sites. These include some underground roster changes, the scaling back of some open pit mining activities and revisions to the product portfolio with the objective of tailoring both volumes and qualities to better match current market demand”, Glencore revealed in a statement.
The Wall Street Journal has reported that the company’s move to curb output will lead to up to 120 job cuts in Australia.
In addition to direct operational changes Glencore will defer some projects and ensure that inventory management and blending are optimised, however regulatory approvals for projects will continue to be progressed to provide future optionality.
Written by Emma McAleavey.