QLD coal project on the market as coal price drops

Brazilian mining giant Vale is selling a Queensland coal project after jobs losses and asset writedowns at its Australian ventures.

The company will put the Degulla project in the Galilee Basin on sale, making it the third Australian coal asset to be put on the market, The Australian reported.

Vale wrote down $1 billion on the value of its Australian coal mines only four months ago due to dipping commodity prices.

Vale axed more than 100 mine jobs from its Isaac Plains open-cut coalmine in Queensland’s Bowen Basin, which it jointly owns with Japan’s Sumitomo.

That followed nine months of a legal battle that was solved over the mine between Vale and Aquila Resources.
WesTrac joined a host of companies slashing jobs, cutting 350 positions as demand for the resources sector slumps.

Its owner Seven Group lowered its earning guidance, saying workers in its NSW and ACT operations will be cut due to ‘challenging marketing conditions’.

It was a bloodbath at the Queensland coalfields last week with a 1000 jobs gone in a period of a week.

GlencoreXstrata cut 450 jobs from Newlands and Oaky Creek mines in the Bowen Basin on Thursday.

Earlier this week, it cut 46 jobs at its Ravensworth mine in the Hunter Valley as it continues its ongoing operational review.

Downer announced it is letting 185 jobs go from BMA’s Goonyella Riverside coal mine in Moranbah.

BMA had advised the mine service contract company they planned to absorb a quarter of pre-strip work at the mine, a spokesperson told Australian Mining.

Peabody Energy announced it is cutting over 400 contractor jobs across its coal mines as it wants to carry out a ‘repositioning and improvement program’ to lower costs.

Hastings Deering cut 200 jobs across its Rockhampton and Mackay sites. 

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