Xstrata to slash 600 jobs

Xstrata has announced it will be cutting 600 jobs across its Australia coal operations.According to the miner it is part of a wider ongoing Australian business review.

It stated that it is "undertaking a planned restructuring to respond to industry-wide pressures including low coal prices and high input costs"

Speaking to Xstrata spokesperson Francis De Rosa, he told Australian Mining that the company is "currently dealing with a very challenging market and a high Australian dollar, so Xstrata has had to act to ensure the ongoing health of the business.

"This [restructing] is part of an ongoing review."

This restructuring will see the company cut 600 jobs across all of its Australian coal operations, with Xstrata explaining that "although we are not breaking down the reductions by individual site, the restructure is focused on scaling back high cost production at some of our mines".

It will also axe jobs at its Sydney headquarters and at some of its Queensland based offices, De Rosa added

Despite the cutbacks Xstrata does not expect its production levels to drop significantly.

It will continue to work on its new mine and expansion projects at Ravensworth North, Ulan West, and Rolleston, De Rosa adding that all of this projects are woth more than $1 billion.

Xstrata added that it will also continue its feasibility studies into Wandoan.

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