Australian miners Rio Tinto and Xstrata will cut 100 jobs each in their coal divisions, with Xstrata planning to consolidate its New South Wales and Queensland coal divisions, while closing its Brisbane office, according to media reports.
The companies cited weak prices, rising costs and the strength of the Australian dollar as the reasons behind the job losses. Xstrata indicated that its coal production will not be affected by the job cuts.
Xstrata's total consolidated coal production in 2012 increased by seven percent year on year to 90.4 million mt, with its Australian coking coal production amounting to 6.9 million mt, down nine percent compared to 2011. In 2012, Rio Tinto's Australian hard coking coal output amounted to 7.85 million, down 11 percent year on year.