A Chinese coal producer has announced massive job cuts as it struggles against industry overcapacity and falling coal prices. Heilongjiang Longmay Mining Holding Group Co Ltd, the largest coal miner in northeast China, will layoff 100 000 words – or about 40% of its workforce.
The company also plans to see non-core assets to help pay down its debt.
Longmay’s workforce before the announced cuts stood at about 240 000 – more than China’s largest coal producer, Shenhua Group, although its annual output was only 10% of Shenhua’s at 49 million t. The company is also weighed down by pension and medical liabilities for 180 000 former workers.
"Personnel is probably its largest cost," said Deng Shun, an analyst at Shanghai-based energy consultancy ICIS C1 Energy told China Daily. "Actually many traditional State-owned coal enterprises are facing the same kind of problem. It has become more severe as the industry remains on a downward trend."
Edited Jonathan Rowland.
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