Peabody Energy Corp and Glencore Xstrata will cut around 500 mining jobs in Australia, a company official and trade publication says, as a global glut in coal supply pushes down prices.
Peabody plans to cut around 450 contractor jobs, while Peabody will lay off around 46 employees at its Ravensworth coal mine.
Anglo American chief executive Mark Cutifani said today the outlook was grim for mining as companies adapt to lower prices and weakening demand.
Xstrata’s job cuts would reduce Ravensworth’s mine workforce by about 26 per cent, with around 130 employees remaining.
A company spokesman, who asked not be named, said the layoffs would trim back production at the mine, but did not give any specific figures. The mine produced around 2.2 million tonnes of mostly coking coal last year.
Prices for thermal coal, used for power generation, have fallen over 30 per cent in the last two years to around $US80 per tonne, while prices for coking coal, used for steelmaking, have dropped about 40 per cent in the last year to around $US130 per tonne.
Chosen excerpts by Job Market Monitor