HomeProduct Complimentary download Glencore to cut Australia’s Collinsville coal output by 2 Mt

Glencore to cut Australia’s Collinsville coal output by 2 Mt

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Publish time: 29th May, 2015      Source: www.cnchemicals.com
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Glencore will reduce coal production by 2 million tonnes at its Collinsville mine in the Australian state of Queensland, as it works to ease oversupply and lessen losses, the company said on May 26.Collinsville has a 6 Mtpa production capacity for thermal and coking coal for domestic and export markets.Glencore holds a 55% stake in the Collinsville mine, with Japanese companies Itochu coal resource owning a 35% stake and Sumitomo 10%."This is in response to ongoing economic challenges caused by lower prices driven by an oversupply of coal in the global market," Glencore said in a statement On May 26."We expect Collinsville will continue to operate at reduced capacity for the remainder of 2015 as we investigate alternative marketing opportunities for the operation and revise mining plans."Glencore has said as many as 80 jobs will be cut at Collinsville, which has a current workforce of 1,227 people.Glencore management said the decision to reduce production at Collinsville was a "particularly difficult decision given the significant effort and the improvements made at Collinsville over the last 18 months in attempting to turn around the mine’s financial position.""The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry’s recent history," Glencore said.Glencore announced in February that its annual production in Australia for 2015 would be reduced by 15 million tonnes.