Glencore has announced its plans to reduce this year’s production by 15 million tonnes to align coal output with existing customer demand.
The latest announcement follows the company’s recent closure of coal production in Australia.
Glencore intends to reduce output at various sites with initiatives that include underground roster changes, scaling back several open pit operations and revising its product portfolio.
The plans aim to tailor volumes and qualities to better match the current market demand.
Glencore will also defer certain projects, in addition to the direct operational changes to ensure that all elements of the company are optimised.
Glencore said it will continue to review all of its coal operations in the prevailing economic climate, and that regulatory approvals for projects are subject to final investment approval.
Streamlining is expected to result in up to 120 job losses across all of the company’s coal mines in Australia.
In late December, Glencore temporary shutdown some of its mines due to over-supply and weak prices worldwide.
During that period, staff was affected and those with insufficient holidays were forced to bring leave forward.
Global diversified natural resource company Glencore’s operations comprise more than 150 mining and metallurgical sites, oil production assets and agricultural facilities.
Image: Glencore’s Bulga Coal Complex in Australia. Photo: courtesy of Glencore.