INTERNATIONAL COAL NEWS

All coal sites impacted: Glencore Australia

GLENCORE has confirmed that changes will sweep across all of its 13 Australian coal mining comple...

Blair Price

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A spokesman did not reveal the impacts to any specific mines.

“In relation to positions affected and implementation of changes, we have only just begun consultation with employees and, out of respect for this process, we will not be providing site by site specifics,” he told International Coal News.

“We can tell you, though, that operational changes will be introduced across all 13 mining complexes, and that this will include changing rosters and parking up equipment at some sites.”

He did not challenge initial reports on how many jobs could be axed.

“We are also not contesting reports suggesting up to 120 positions may be impacted across our coal business,” the spokesman said.

While take-or-pay rail and port commitments chiefly affect Glencore’s Queensland coal mines – leading to speculation that the 10Mtpa of coal Glencore hauls through its own rail fleet in New South Wales is less costly to cut – the spokesman said the company never comments on commercially confident aspects of its business.

Scepticism of Glencore implementing the full 15Mtpa of cuts has emerged in the industry and from some analysts. Macquarie Wealth Management believes the announcement was timed to help support thermal coal prices ahead of annual contract talks with Japanese utilities – based on the Japanese financial year which begins on April 1 with the total export trade equating to about 60Mtpa.

The 13 mining complexes include the Oaky Creek, Newlands, Rolleston, Clermont and Collinsville operations in Queensland and the Bulga, Mangoola, Liddell, Ulan, Mt Owen/Glendell, Ravensworth, West Wallsend and Tahmoor operations in NSW.

The Oaky Creek complex in the Bowen Basin, consisting of two longwall operations, is the only hard coking coal-focused complex with the cuts widely expected to hit thermal coal output.

A cut of 15Mtpa is more than 20% of Glencore’s total coal output in Australia.

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