Rio and Xstrata slash 200 jobs

Rio Tinto and Xstrata have confirmed plans to slash around 100 jobs each as they try to stem losses from struggling coal mines in NSW and QLD.

AAP reports Rio will cut jobs from mines in central Queensland and the NSW Hunter Valley.

 

The Construction, Forestry, Mining and Energy Union said the cuts would come on top of a further 100 fixed-contract positions Rio said it would cut from the Clermont coal mine this month.

 

The CFMEU said Rio's coal operations were under pressure and the Clermont mine had been “bleeding $57 million a month” in costs.

 

Rio has made no comment on the job cuts, but has reinforced previous claims that it's looking to cut costs amid a tougher economic climate.

 

The news comes as Xstrata announces plans to axe around 100 jobs with the closure of its Brisbane office.

 

According to AAP while the bulk of the cuts will be made from Brisbane, a small number of corporate roles in Sydney are also set to go.

 

Both Rio and Xstrata have scaled back operations on several coal projects over the last six months.

 

Last year Xstrata axed 600 workers from Hunter Valley and Bowen Basin operations, and along with several other cutbacks, Rio closed the Blair Athol mine late last year after the deposit ran out of coal.