Australian Mining Reduction
February 27, 2015
There was news in late February that was certainly sobering for the Australian mining industry.
Glencore, a mining and commodities company, announced it was cutting production at its Australian coal mines by 15% this year. Some of the reasons cited in reports included low prices, oversupply and weak global demand.
The Swiss company says this is a permanent production cut. Around 100 jobs will likely be lost. Glencore mines were closed for about three weeks around the Christmas holiday. This was done in an effort to reduce supply lines. Some projects may deferred or called off altogether. Some operations will be scaled back.
The production reduction will certainly impact Australia's mining industry. This could represent a cut of up to 20 percent of total production in Australia.
Glencore produced 60 million tons of thermal coal in Australia last year. In 2015, the company plans to slash spending on mining.
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