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Rio Tinto warns of job cuts at Queensland coal mine

Rio Tinto warns of job cuts at Queensland coal mine

Photo by Bloomberg

2nd May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Mining giant Rio Tinto on Friday warned of staff cuts at its Hail Creek coal mine, in Queensland.

“Like others in the Australian coal mining industry, Rio Tinto is facing the challenge of increasing costs and dropping coal prices,” a spokesperson told Mining Weekly Online.

“We are working to improve productivity and reduce costs across our mines. Regrettably, this means some roles at Hail Creek mine are no longer required as part of changes to ensure the mine is sustainable in challenging conditions.”

Rio was unable to clarify the number of jobs at risk at the Hail Creek mine, which currently employs about 940 staff members and produces at an average of seven-million tonnes a year.

The spokesperson noted that consultation processes were in progress and said that Rio would be providing support for those staff affected.

The declining coal price has significantly affected Rio’s operations in Australia, with the miner previously warning that some 1 300 jobs were in danger at its Mount Thorley Warkworth operation, in New South Wales, if a mine extension was not approved.

Australia’s Supreme Court failed to overturn a ruling that found the projected economic benefits of extending the mine failed to outweigh the environmental impacts, and demanded that Rio submit a revised development plan for the mine.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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