It is reported that RIO Tinto is following through with plans to lay off workers at its Clermont thermal coal operation in north-eastern Australia with a large number of employees and contractors already told their jobs have been cut.

Mr Stephen Smyth a district president at the Construction, Forestry, Mining and Energy Union in Queensland said that at this stage, Clermont had lost a total of 84 workers.

A spokesman for Rio Tinto wouldn't comment on how many jobs would be cut in the coal operation but said that like others in the industry, the company is faced with increasing costs in an environment of significantly lower coal prices and a high foreign exchange rate.

He said that "We are working to improve our competitiveness by actively seeking ways to reduce costs across our business which unfortunately means some roles will no longer be required. These are not decisions we take lightly. Jobs are being protected wherever possible and support is being provided for employees."

The company in July said it expected to cut an unspecified number of jobs as it sought ways to offset the slump in thermal coal prices and higher operating costs.

Mining companies across Australia have been retrenching over the past two months following a slump in prices for coal, iron ore and other industrial commodities as demand from major consumer China has weakened.

The Clermont mine was officially opened in 2010 and has been designed to ultimately produce as much as 12.2 million tons of coal a year making it Australia largest single producer of the fuel. It employed more than 770 workers.

Rio Tinto produced 8.91 million tons of thermal coal across all its operations in the first six months of the year up by 2%YoY thanks largely to increased production at Clermont that offset the impact of wet weather at a number of Queensland mines.

Source - The Australian

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