Job cuts in Collinsville

Posted December 8, 2015

Collinsville

 

Glencore has announced another round of job cuts, this time at Collinsville.

The operational changes at Collinsville are expected to affect about 180 positions across the 230-strong workforce.

Eighty positions were lost at the same coal operation in May.

In Mount Isa, Glencore has also closed its camp at George Fisher mine which catered to a fly-in, fly-out workforce.

This followed a move to reduce the workforce at the two Mount Isa zinc-lead operations and McArthur River Mine, located in the Gulf of Carpentaria, by more than 550 staff and contractors. Those cuts were announced in October.

Lower coal prices and market oversupply have contributed to the Collinsville mine incurring financial losses during 2015.

As planned, Collinsville will halt production for nearly three weeks over the Christmas period. The majority of employees at the mine will take annual leave during this time.

Glencore would phase down overburden removal and only produce coal from in-pit inventory and field stockpiles next year, corporate affairs manager Francis De Rosa said.

“We will reassess the situation during the year,” he said.

“The major reductions in workforce numbers will be initiated by the beginning of March 2016.

“We have support services in place for those employees and their families who are affected by the decision, and we will look at options for redeployment where possible.

“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. ”

Thermal coal prices have dropped 43 per cent from about $US95/t (Sept 2013 - when Glencore took operations at Collinsville in-house) to about $US54/t (Oct 2015).

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