27/09/2012
International news about mining events. you should Read it, we are going to wait your comment:
Double blow for Australia's mining industry as 900 jobs are cut –
Telegraph
Miners Xstrata and BHP Billiton have announced that 900 jobs are going at
their Australian coal operations, after its resources minister declared
the mining boom over. Xstrata, the FTSE 100 miner with which commodity
giant Glencore is trying to merge, blamed low coal prices, high costs and
the strong Australian dollar as it announced plans to reduce its employee
numbers by around 600. The jobs cut represent both contractors and
permanent positions, the miner said. “Although we are not breaking down
the reductions by individual site, the restructure is focused on scaling
back high cost production at some of our mines,” it said. BHP Billiton,
the world’s biggest miner, said it will halt the open-cut Gregory coal
mine it runs as a joint venture with Japan’s Mitsubishi. Up to 297 jobs
are set to go at the Queensland site. Like Xstrata, BHP cited falling
prices, high costs and the strong Australian dollar as it announced the
mine, running since 1979, would close from October 10. “Gregory open-cut
mine production was no longer profitable in the current economic
environment,” it said, adding that the underground mine would stay open.
The announcements come after Martin Ferguson, Australia’s resources
minister, last month declared its mining boom was over in terms of
commodity prices. While prices drop, miners’ operating costs have yet to
fall likewise. They have risen as much as 85pc in the past three years,
says Citigroup.
