Adani threat to ditch Abbot Point

India’s Adani Group has warned it may scrap plans to expand its coal terminal at Queensland’s Abbot Point if dredging of the sea bed cannot be completed next year, because it could incur $A1 billion in losses annually from export delays, according to the Australian Financial Review.

Adani Australia Coal Terminal CEO Sandeep Mehta has told Queensland’s minister of environment there is “a real risk the project will not proceed” if dredging does not occur between March 1 and June 30, according to legal documents filed with Brisbane’s Administrative Appeals Tribunal.

“Adani will also suffer at least one year’s worth of losses associated with not having cargo moving through the export port,” Mehta said in an affidavit.

Miners' cost cuts to continue

Announcements of job cuts in the past week from freight and logistics companies, Asciano and Aurizon, and reports that BHP Billiton has shed another 500 jobs from its iron ore operations confirm that anaemic revenue growth and slashing costs remain pervasive market themes, particularly for companies exposed to the coal and iron ore sectors, according to the Sydney Morning Herald.

In the face of the 25% slide in the iron ore price since mid-April, iron ore producers have little choice but to trim costs to remain globally competitive and ramp up production to boost revenues and profits.

The recent announcements and reports of job shedding are unlikely to be the last and will only add to the persistent weakness in labour market conditions.

As long as companies continue to combat anaemic revenue growth with aggressive cost cutting, the unemployment rate is unlikely to decline in the near term.

Boardroom battle leaves Cliffs on edge

Ownership of the $1 billion-plus Koolyanobbing iron ore operation in Western Australia could be up for grabs as a result of a bitter boardroom proxy battle at Cliffs Natural Resources, according to The Australian.