Anglo American cuts Capcoal jobs

OREANDA-NEWS. UK-South Africa mining firm Anglo American will cut 85 jobs at its 8.6mn t/yr Capcoal coking coal mining complex in Queensland, Australia, while reducing work rosters for the rest of its staff as it seeks to further cut costs.

The changes take effect from 5 October and are in response to the "extremely challenging market conditions" facing the industry, the company said. Anglo American declined to comment on the impact on coal volumes from the roster change, but industry sources suggested that production rates will be pushed to remain high as the company looks for buyers for its Australian coal assets.

Capcoal operates the Grasstree and Aquila underground mines, along with the Lake Lindsay and Oak Park open-pit coking coal mines. It produced 1.79mn t of hard coking coal during April-June, down from 2.26mn t in January-March. Anglo American put the reduced production at Capcoal down to a longwall move at Grasstree during the latest quarter. The union at the site said that the mine had met all of its production targets ahead of the decision to cut operating rosters at the mine.

Anglo American increased its total coal production from Australia to 8.2mn t during April-June from 8.08mn t for January-March, as its new Grosvenor coking coal mine ramped up deliveries of development coal. It produced 5.25mn t of export coking coal, 1.33mn t of export thermal coal and 1.62mn t of domestically sold thermal coal in Australia during April-June.

Anglo American is one of a handful of international mining companies that are look to sell off their Australian coal assets because lack of profitability. Others looking to sell include Brazil's Vale, UK-Australian mining company Rio Tinto and US energy firm Peabody.