Persistently low coal prices are being blamed for the downsizing.
The Curragh open cut residential coal mine 30km north of Blackwater in central Queensland’s Bowen Basin produces about 8.5 million tonnes of export metallurgical coal and 3Mt of domestic steaming coal annually, and employs about 600 permanent employees plus contractors, according to Wesfarmers’ public information.
In a statement to ICN, Wesfarmers said it had advised Thiess there would be a reduced requirement for mining operations from November, as part of a “further review at the mine”
Wesfarmers said this was a direct result of the continuing low coal price and prevailing market conditions which posed “significant challenges” to Curragh’s competitiveness, profitability and future, which requires additional cost reduction measures to be implemented.
Curragh general manager Craig McCabe said he acknowledged the decision to reduce the work undertaken on-site by Thiess would impact upon the number of people working at the mine but stressed the mine had to make decisions that would allow it to continue to operate in what were very difficult times.
ICN understands Wesfarmers did not communicate a specific number of job cuts to Thiess but rather the work requirements in terms of moving overburden, coal mining, etc.
The jobs affected are therefore strictly Thiess employees, not Wesfarmers, and there is the possibility that the contractor may redeploy some of them to other jobs, which is beyond Wesfarmers’ control.
