More Job Losses Seen at Coal Mines

With coal prices sliding and cost rising, as well demands from China diminishing, the coal industry of Australia is forced to make job cuts, leaving some 2000 workers unemployed this year.

At least 300 jobs will be loss when the BHP Billiton Mitsubishi Alliance (BMA) closes some of its operation, while Xstrata Coal will be letting go of 600 workers in its New South Wales and Queensland coalmines. These cutbacks follow previous ones done in the first half of the year.

Coal and Allied, a Rio Tinto subsidiary, is also eyeing some cutbacks with resources, even as the job situation seems secure for now.

According to reports, the market has undergone significant changes with both thermal and coal products. The last two quarters for this year saw the Australian dollar becoming stronger, but it also exposed some real pressure in the industry.

One head of a mining company said that the business should be sustainable, amidst current price increase.

The union is alarmed and has asked division heads to meet with heads to propose a bargaining agreement with companies. A source says that a strike was unlikely to occur, and it’s usually common practice with mining companies to let go of workers even before they assess the situation. These workers are usually rehired when the situation improves.

Mining companies are considering consolidating operations in some regions to also help with the cutbacks.