While UBS has revealed that South32’s “cost out” plans include closing down Illawarra Coal’s head office at the University of Wollongong’s Innovation Campus, Macquarie Wealth Management has flagged that $US10 million could be saved from such an office closure at Illawarra Coal.
Both brokers attended the South32 analyst trip held last month which included a visit of Illawarra Coal’s Dendrobium longwall mine.
UBS also said the office closure would come with about 65 job cuts.
An industry source told ICN that some Illawarra Coal management level professionals have been offered roles in Perth, where South32 is based, in order to stay employed with the company.
This was not confirmed or specifically denied by South32.
"Illawarra Coal will continue to require facilities for local employees at the current office location," a spokesperson told ICN.
"As part of the planned demerger, some support services will be provided out of South32’s Australian Regional Centre in Perth, which is offering promotional opportunities for employees at our Australian assets."
"Only minimal changes are expected for operational employees."