Glencore has announced plans to scale-down production at its Collinsville coal mine in north Queensland, Australia, by two million tonnes citing low coal prices.

As a result, the company is cutting 80 jobs from the existing workforce of 340 at the mine, which opened in 1919.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

According to Steve Smyth from the Australian trade union the Construction, Forestry, Mining and Energy Union (CFMEU), the company’s latest decision comes as a blow for the community which still did not recover from the earlier closure of the mine that took place in 2013.

"The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry’s recent history."

With regard to the operational changes, Glencore is set to consult with its workforce at the mine.

The company said that it will investigate alternate marketing opportunities for the mining plans and continue to operate Collinsville at reduced capacity during the remaining part of the year.

See Also:

Glencore said in a statement: "The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry’s recent history."

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2013, when the mining company took over Collinsville from Xstrata for $29bn, it was in loss and closed in August same year.

in January 2014, the mine re-opened as a non-union operation.

Located in the northern part of the Queensland Bowen Basin, the Collinsville mine is part of the NCA Project and produces export steaming coal and coking coal for both domestic use and export from the open cut mine.

With coal reserves amounting to 196 million tonnes (mt) of coking coal, Collinsville has a production capacity of 6mt of coal a year.