Glencore to cut 180 jobs from Collinsville mine next year
GLENCORE last week commenced consultation with its Collinsville workforce over further steps to reduce production at the mine.
The company said in a statement that lower coal prices and market oversupply have contributed to Collinsville incurring financial losses during 2015.
As planned, Collinsville will halt production for nearly three weeks over the Christmas period.
The majority of employees at the mine will take annual leave during this time.
In 2016, we will phase down overburden removal and only produce coal from in-pit inventory and field stockpiles. We will reassess the situation during the year.
The operational changes at Collinsville are expected to affect approximately 180 positions across the 230-strong workforce.
The major reductions in workforce numbers will be initiated by the beginning of March 2016.
We have support services in place for those employees and their families who are affected by the decision, and we will look at options for redeployment where possible.
It is a particularly difficult decision given the significant effort and the improvements made at Collinsville by Glencore and the entire workforce over the last two years in attempting to turn around the mine's financial position.
The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry's recent history.
We will continue with our environmental management programs on the site in relation to spontaneous combustion management, rehabilitation of legacy areas and management of mine water.
Thermal coal prices have dropped 43% from ~US$95/t (Sept 2013 - when Glencore took operations at Collinsville in-house) to ~US$54/t (Oct 2015).