Following on from last month’s widespread profit warnings and job cuts from Australia’s various mining services firms, mining companies have joined the chorus, with Peabody Resources yesterday announcing that 450 jobs would be cut from its New South Wales and Queensland coal mining operations amid falling coal prices and cancelled projects. From the AFR:
Peabody Energy has cut 450 contractors across its New South Wales and Queensland operations as global mining companies slash Australian jobs amid falling commodity prices and project cancellations.
Peabody joins Glencore Xstrata, Barrick Gold, BHP Billiton and Rio Tinto in slashing employee and contractor numbers, with about the loss of 600 local positions announced in the past week alone.
In a statement, a Peabody spokeswoman said the reduction in contractors was a response to “current market conditions and ongoing actions to reduce costs”.
“We are taking these steps to secure the long-term competitiveness of our operations,” said the statement.
Peabody operates three coal mines in New South Wales, including the coking coal Metropolitan Mine and thermal coal mines Wambo and Wilpinjong. The group’s Queensland portfolio includes eight mines, including the coking coal operation Burton Mine and the Coppabella Mine…
One senses this is only the beginning.