Jobs go at Glencore’s Mt Owen coal mine

OREANDA-NEWS. Around 70 jobs will be lost at Switzerland-based mining and trading firm Glencore's 5mn t/yr Mt Owen open-cut thermal and semi-soft coking coal mine in New South Wales (NSW), as part of its plans to reduce coal exports from Australia by 15mn t this year.

Contractor Thiess is making around 70 contractors redundant, as part of an operational review at the mine in response to Glencore's plans to cut production and the continuing economic difficulties faced by the Australian coal industry.

The mine is part of the 15mn t/yr Mt Owen complex, which also includes the Ravensworth East and Glendell open-cut mines.

Glencore closed all of its Australian coal mines for three weeks over Christmas because of the oversupply in the market. It said it is on track to meet its plans to cut 15mn t of Australian production this year, mostly from its thermal coal operations. Glencore produced 60mn t of thermal coal and 9.5mn t of coking coal in 2014.

Thermal coal prices have fallen to \$55.60/t fob Newcastle for 6,000 kcal/kg NAR coal from \$73.62/t a year ago. Lower grade 5,500 kcal/kg NAR coal prices have fallen to \$46.21/t fob Newcastle from \$63.85/t a year ago. While the Australian dollar weakened between September and February, it has since stabilised against the US dollar, making it more difficult for Australian coal producers to compete globally.