Mining giant Xstrata will take control of the Collinsville Coal Mine away from Thiess as it pushes for the project to turn a profit.
According to the Fraser Coast Chronicle, a statement released by Xstrata said Collinsville Mine – in central QLD – had "suffered substantial financial losses," on the back of lower coal prices, the high Australian dollar and high operational costs.
Xstrata owns Collinsville mine, but has left its management to Thiess.
By taking over the mine, Xstrata said it hoped to "restore the mine's viability".
The media release by Xstrata said the company would work closely with Thiess but that the mine required "a more comprehensive reorganisation".
A spokesman for Xstrata told Australian Mining the company was not in a position to ‘talk in detail’ about any changes at the mine, or whether job losses would occur, but did say that after a transition period was completed in 5 to 6 months, operational changes would be made clearer.
The mine currently produces 4.5 million tonnes of product coal per annum and employing 300 TThiess satff and 160 contractors.