GlencoreXstrata to cut production, axe jobs at Mount Owen mine

27 May 2013 (Last Updated May 27th, 2013 18:30)

GlencoreXstrata plans to downsize its workforce by almost 20% and cut production by 5% at its Mount Owen open-cast mine in Australia due to tough trading conditions in the country.

GlencoreXstrata plans to downsize its workforce by almost 20% and cut production by 5% at its Mount Owen open-cast mine in Australia due to tough trading conditions in the country.

Construction, Forestry, Mining and Energy Union district president Peter Jordan told The Herald that challenging market conditions and rising production costs have had a huge negative impact on the Mount Owen mine.

Around 55 mineworker positions, six tradespeople and 12 contractors had been earmarked to lose their jobs.

The news comes just two weeks after GlencoreXstrata cancelled its plans to build a A$1bn ($997m) coal export terminal in Queensland due to poor market conditions.

A spokesperson for Thiess, the operator of the mine told the newspaper; "We appreciate the impact this will have on some of our employees and their families.

"We are making every effort to proactively consult with the workforce to ensure they have a full range of support services."

By slashing production, GlencoreXstrata is making an effort to restrict cheap thermal coal from flooding the markets.

Coal rices have slumped around 30% since their peak two years ago.

Several coal mines across Australia are planning to cut production, axe jobs and sell assets as shipments from global competitors are increasing, slashing hopes of a recovery in coal prices.

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