Chinese-controlled coal miner Yancoal Australia has announced that it will be cutting close to half the jobs at two of its collieries due to a downturn in global coal prices that has led to losses for the company of more than A$1 billion.
225 Yancoal workers in the Hunter region in New South Wales have been told they are about to lose their jobs.
In an ASX Announcement, the company said that its Abel underground operation near Maitland will shed two-thirds of its workforce and will no longer operate on weekends. At its Austar underground mine, near Paxton, Yancoal will cut 55 staff, leaving it to operate with 185 employees.
“This has been a difficult decision for the business and while we have taken every step over the last year to try and avoid today’s announcement, unfortunately we do not have any further options available at this time,” said Yancoal Australia Chief Executive Officer, Reinhold Schmidt.
“Our management teams are speaking with employees and ensuring they have access to the necessary external employment, redundancy and counselling services required to assist them throughout the process.”
Yancoal is owned by Yanzhou Coal Mining, China’s fourth-largest coal company.
The company said it wants the redundancy process complete by 7 August 2015.