Sydney, 10 September
2012
As part of an ongoing review of its business in Australia,
Xstrata Coal is undertaking a planned restructuring to respond to industry-wide
pressures including low coal prices, high input costs and a strong Australian
dollar against the US dollar.
Following this review, and in keeping with the cost savings
objectives announced at our half-year earnings, we will be reducing our employee
numbers by approximately 600. The reductions involve both contractors and
permanent positions.
Although we are not breaking down the reductions by individual
site, the restructure is focused on scaling back high cost production at some of
our mines. We do not expect a material impact on Australian production
volumes. We are also reducing some roles at our corporate headquarters in
Sydney and consolidating our office-based operations in Queensland.
Our approved growth projects, such as Ravensworth North, Ulan
West and our expansion at Rolleston, are proceeding as planned, and remain on
budget and on schedule. Feasibility studies into our Wandoan Project continue,
to enable an investment decision once relevant approvals have been completed and
market conditions permit.
Ongoing reviews continue across the business to ensure that Xstrata Coal
retains a highly competitive cost position in the current market environment.
If further adjustments are required, an announcement will be made at that time.
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