Glencore Xstrata axes 450 jobs as weak coal prices take their toll

27th Jun 2013 09:20

Glencore Xstrata is axing 450 jobs as part of plans to cut back coal production at its Newlands and Oaky Creek mines in Australia.The mining giant's plan comes as weaker coal prices, higher costs, oversupply and subdued demand take their toll."Against a backdrop of lower coal prices, high input costs and the strong Australian dollar, the decision to cut production at the mining operations has been taken to maintain viability in a challenging market," Glencore Xstrata said in a statement on Thursday."This is a difficult decision, but one that needs to be taken in the current challenging economic conditions." Resource companies across Australian have been slashing hundreds of jobs in response to falling commodity prices and higher costs. Glencore Xstrata's latest round of cuts follow an announcement it would lay off 46 employees at its Ravensworth mine in the Hunter Valley, Australia.The world's largest gold mining company Barrick has also let go 65 staff in Western Australia as a result of weaker gold prices and rising costs, while BHP Billiton and Rio Tinto have also been streamlining their local operations, shedding administration positions.RD