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October 17, 2018updated 19 Nov 2018 12:07pm

Glencore to axe 430 jobs at Australia’s Hail Creek coal mine

Multinational commodity trading and mining company Glencore has decided to downsize its workforce by around 30% at its Hail Creek coal mine in the northern Bowen Basin mining region of central Queensland in Australia.

Multinational commodity trading and mining company Glencore has decided to downsize its workforce by around 30% at its Hail Creek coal mine in the northern Bowen Basin mining region of central Queensland in Australia.

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The proposed move comes after the company undertook a review of its operations, Reuters reported.

The job cuts will affect around 430 staff and will bring down the number of workers at the mine to 930 from 1360.

Glencore acquired an 82% interest in the Hail Creek mine and adjacent coal resources for $1.7bn from Rio Tinto in March this year and commenced operational management in August. The transaction also included Rio’s 71.2% interest in the Valeria coal resource.

The company will introduce a new roster system that will allow employees at the mine to work for seven days and go on leave for the subsequent seven days.

Furthermore, Glencore is planning to reconfigure the existing mining methods at Hail Creek. The process is expected to be rolled out in phases over the next 18 months and majority of the proposed changes are anticipated to be implemented by the second quarter of next year.

The acquisition of Hail Creek was part of the company’s strategy to strengthen its position as a supplier of metallurgical coal used for steelmaking.

“The job cuts will affect around 430 staff and will bring down the number of workers at the mine to 930 from 1360.”

Last year, production of hard coking and thermal coal from the mine stood at nearly 9.4 million tonnes.

Glencore operates the Hail Creek mine, which is a large scale open cut operation in a joint venture with Nippon Steel & Sumitomo Metal (NSSMC) (8%), Marubeni (6.67%) and Sumitomo (3.33%).

As at 31 December last year, the Hail Creek mine had mineral resources of 601 million tonnes with proven and probable reserves of 142 million tonnes.

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Dig deeper with our mining equipment forecasts

As ore mines ramp up and come on stream, the total number of active surface machines (including trucks, excavators, shovels, loaders, graders and dozers) is forecast to rise from 141,470 in 2020 to 167,367 by 2025. This will be a CAGR of 3.4% from 2020 to 2025. The largest contributor to this growth is expected to be trucks, particularly smaller-sized trucks with shorter lifespans, used extensively in parts of Asia Pacific. Underground mining equipment is similarly expected to see a CAGR of 2.3% in this same time frame, with the number of mining trucks and loaders/LHDs in active underground mines expected to rise to 19,853 by 2025. GlobalData’s extensive mine-site research and equipment models have been used to build a complete view of mobile mining equipment populations globally for trucks, loaders, graders, dozers, excavators and shovels. This report includes informative breakdowns by each major region and key mining country, and also by major commodity. Read GlobalData’s Global Surface and Underground Mining Equipment: Populations & Forecast to 2025 for a complete view of the market, allowing you to best position yourself for the future.
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