Commodities Buzz: Mining Giant Cuts Jobs On Falling Coal Prices, Weak Demand Outlook

Glencore Xstrata has unleashed a massive job cuts in its coal mining operations in Australia as falling coal prices, higher costs, oversupply and subdued demand take their toll. The mining giant said today that it was cutting back coal production at its Newlands and Oaky Creek mines, which would lead to a loss of about 450 jobs by the end of the year. Against a backdrop of lower coal prices, high input costs and the strong Australian dollar, the decision to cut production at the mining operations has been taken to maintain viability in a challenging market, Glencore Xstrata said in a statement. This is a difficult decision, but one that needs to be taken in the current challenging economic conditions,'' Glencore Xstrata said. A lot of jobs have been lost across the country in past weeks as resource companies respond to weaker commodity prices and high costs. Australian Thermal coal prices have slipped sharply in last few months and currently linger around $90 per tonne, down around 9% on the year. Source by Commodity Insights