Glencore to cut Australian coal output

Glencore has announced plans to slash Australian coal production by 15 million tonnes this year.

It is understood that this will result in up to 120 job losses across all of its coal mines in Australia.

It follows the miner's short shutdown of its coal operations over the Christmas break in an effort to reduce its supply levels, and its agreement with Peabody to merge their adjoining coal operations – Wambo and United – in the Hunter Valley in an effort to cut costs and increase efficiencies.

According to the miner this reduction will allow it to "more closely align our coal output wiht current customer demand".

Speaking to a Glencore spokesperson, they said that this is part of CEO Ivan Glasenberg's statements on the company's outlook, in which it is "not willing to cannabilise our revenues for volumes".

"We aren't going to push incremental tonnages."

The miner stated these initiatives will be carried out at a number of different sites, and will include "some underground roster changes, the scaling back of some open pit mining activities and revisions to the product portfolio".

"In addition to the direct operational changes we will defer some projects and ensure that inventory management and blending are optimised," Glencore said in a company statement.

"We will continue to review all our coal operations in the prevailing climate."

Part of this is review is the extension of its operating mines' lives, rather than outright extension.

"We are looking to these mine life extensions, such as that at Bulga which pushes the operational life from 2018 to 2030, as it gives us the option for continuous production of coal at the same ROM volumes for longer, we aren't going to increase the volumes but we will look to increase the life of these mines," the spokesperson told Australian Mining.

 

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