Debt-hit Glencore to slash Aussie mine jobs

Debt-laden Swiss mining giant Glencore has begun talks with miners at its Collinsville coal mine in Australia where it plans to cut back production affecting 180 jobs.

Debt-hit Glencore to slash Aussie mine jobs
Photo: AFP

The Zug-based group said on Monday that talks with miners were launched last week and that for a start the mine would be closed for three weeks during the holidays.
Then in 2016, it plans to reduce production in order to limit the stock in the pit, it added in an email sent to AFP.
The changes will affect around 180 of the 230 people employed at the mine located in Queensland, in the northeast of Australia.
Glencore is struggling under the weight of tens-of-billions-of-dollars in debt with a global rout in commodities prices hitting its bottom line.
The market for heating coal has fallen 43 percent since Glencore took over the Collinsville mine with its acquisition of the mining group Xstrata in
2013, the company said.
“It is a particularly difficult decision given the significant effort and the improvements made at Collinsville by Glencore and the entire workforce
over the last two years in attempting to turn around the mine's financial position,” the company said.
“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.”
The decline in global commodities prices has caused Glencore to lose more than three quarters of its value since listing with much fanfare in London and Hong Kong in May 2011.
Since September Glencore has announced a series of drastic moves aimed at cutting its towering $30-billion debt by a third, including suspension of activities at its Katanga copper mine in the Democratic Republic of Congo.
Glencore is scheduled to report on its current strategy at a conference for investors on Thursday.
Glencore shares dropped 0.44 percent to 86.91 pence in mid-morning trade in London in an overall market up 0.56 percent.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.


At least 19 illegal miners killed at subsidiary of Swiss-based Glencore

At least 19 illegal miners were killed on Thursday after part of a copper mine collapsed in southeastern DR Congo, Swiss-based mining giant Glencore said.

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore
Photo: AFP

The incident happened when two galleries caved in at a mine in the Kolwezi area operated by Kamoto Copper Company (KCC), a subsidiary of Glencore.

“Tragically there were 19 fatalities today, with possible further unconfirmed fatalities,” Glencore said in a statement, which said there had been recurrent problems with illicit mining on its concessions.

Other reports suggest the death toll could be higher. 

The Congolese site Actualite.CD reported at least 36 deaths.

“The illegal artisanal miners were working two galleries in benches overlooking the extraction area. Two of these galleries caved in,” the company said.

Glencore said KCC had observed a “growing presence” of illegal miners, with on average 2,000 people a day intruding on its operating sites.

“KCC urges all illegal miners to cease from putting their lives at risk by trespassing on a major industrial site,” Glencore said.

Illegal mining is common and frequently deadly in Democratic Republic of Congo, where safety is often poor and risk-taking high.

Figures indicating the scale of the problem are sketchy, given that many mines are illegal and remote.