Xstrata Coal has announced it will be cutting around 600 positions from its operations, including both contractors and permanent positions. There would also be reduction of some roles at the Sydney corporate headquarters and consolidation of office-based operations in Queensland.

 

In a statement, Xstrata said it was responding to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar.

 

Xstrata said that while the cut backs were not being identified by individual site, the restructure would focused on scaling back high cost production at some of mines.  

 

“We do not expect a material impact on Australian production volumes,” the statement said. 

 

“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.”