Glencore cuts costs at Australian operations
PERTH (miningweekly.com) – Diversified miner Glencore has unveiled significant cost cuts at its recently acquired coal assets in Queensland and New South Wales.
Speaking to analysts on a site visit, Glencore noted that the Hail Creek operation, acquired from mining major Rio Tinto as part of a $1.7-billion deal, which also included the Valeria coal development, had already achieved cost cuts of around $110-million a year by optimising the mine plan.
The miner told analysts that by changing the orientation of the mine plan and eliminating the dragline from rock moving operations, the company will be able to significantly reduce the low truck and shovel productivity that has constrained the operation.
At the Hunter Valley Operation (HVO), operational changes have already resulted in some $75-million of annual cost improvements, with Glencore highlighting the optimisation of the mine plan, pointing to a 19% reduction in headcount and a 13% reduction in the mine fleet.
Furthermore, Glencore told analysts that significant synergies would be gained through the combination of the HVO with its existing asset base, with the potential to increase the reserves of the Hunter Valley operations by more than 100%.
Glencore holds a 49% interest in HVO in a joint venture with Yancoal, with the miner having paid some $1.14-billion and a 27.9% share of $240-million non-contingent royalties over five year years, for its interest.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
