BHP Billiton confirmed Wednesday that it will cut 290 jobs in the next few weeks from its Mount Arthur thermal coal mine in the Australian state of New South Wales citing "an extended period of declining thermal coal prices."
That will leave 1,440 people on the mine's workforce, including contractors, a spokeswoman said.
"Despite extensive work over the past two years to reset our production costs and safely improve the mine's productivity, Mount Arthur coal must continue to significantly improve performance to be a globally competitive operation," James Palmer, BHP Billiton's New South Wales energy coal asset president, said in a statement.
The business unit recorded a $9 million loss before interest and tax expenses in the six months to December 31.
BHP Billiton said challenging market conditions including a 27% decline in average realized prices for thermal coal on global markets have led it to overhaul the Mount Arthur mine.
The New South Wales unit sold 9.2 million mt of thermal coal exports in the six years to December 31, compared with 9.4 million mt a year earlier.
Newcastle 5,500 kcal/kg NAR-grade thermal coal, which is produced by the Mount Arthur mine, was assessed at $41.30/mt FOB on a 20% ash basis Tuesday, down 23% year on year, according to Platts data.
