The Abbott Government’s plan to reboot the mining boom by cutting taxes has received another reality check today, with pressure from falling prices and the stubbornly high Australian Dollar leading to another 700 job losses across BHP’s Queensland coking coal business. From The Canberra Times:
BHP is the biggest employer in central Queensland…
Costs across BHP’s coal division are under the microscope, with every operation being pushed to operate as independently profitable.
The cuts are part of an ongoing review and represent about 8 per cent of of the 6000 full-time staff at its Queensland coal business, BHP Mitsubishi Alliance (BMA)… The business also employs about 5000 contractors…
“BMA has to redouble its efforts to improve the cost base of the business,” he said.
BHP has not ruled out further job cuts in its coal division.
The $60 billion coal industry is under immense pressure, with mine closures and job losses expected to accelerate this year.
The upcoming mining bust is going to be something to behold. Waning Chinese demand colliding with massive supply growth is a dangerous combination, and spells a protracted period of cost deflation and ongoing austerity amongst mining operations and capex.
