10 September 2012

Xstrata Coal to cut around 600 jobs in Australia

Sydney - 10 September 2012 - As part of an ongoing review of its business in Australia, Xstrata Coal is undertaking a planned restructuring to respond to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar. 

Following this review, and in keeping with the cost savings objectives announced at its half-year earnings, it will be reducing its employee numbers by approximately 600. The reductions involve both contractors and permanent positions. 

Although it did not breaking down the reductions by individual site, the restructure is focused on scaling back high cost production at some of our mines. It does not expect a material impact on Australian production volumes. It is also reducing some roles at its corporate headquarters in Sydney and consolidating its office-based operations in Queensland. 

Its approved growth projects, such as Ravensworth North, Ulan West and its expansion at Rolleston, are proceeding as planned, and remain on budget and on schedule. Feasibility studies into its Wandoan Project continue, to enable an investment decision once relevant approvals have been completed and market conditions permit. 

Ongoing reviews continue across the business to ensure that Xstrata Coal retains a highly competitive cost position in the current market environment. If further adjustments are required, an announcement will be made at that time. 

Source: Xstrata Coal