MINING giant Glencore has announced two-week shutdowns at its Hunter coal mines to cut production, coinciding where possible with the September school holidays.
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While job cuts were not confirmed, the company says workers will have to take leave when it shuts its operations.
Employees are being addressed this morning at pit top meetings and the cut backs were confirmed in a statement released just after 9am.
School holidays start on Monday, September 28, and school resumes on Monday, October 12, and the shutdowns are understood to start on the weekend after school finishes and conclude on the Sunday before pupils return.
Production will stop at affected mines but Glencore will still be railing coal to the Port of Newcastle for export, meaning those mines will have small crews at their coal loaders.
The northern district president of the mining division of the CFMEU, Peter Jordan, said the union supported Glencore's approach.
"I have met with Glencore this morning to discuss planned shutdowns at Northern District coal mine operations," Mr Jordan said.
"Further discussions at a site level are taking place with district union officials.
"Two-week shutdowns will affect operations considered non-essential.
"They will be timed to coincide with school holidays, with workers able to use leave entitlements during the shutdown period.
"The union supports this approach as a way to protect permanent and contractor jobs at a time of economic volatility affecting global demand for coal."
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The Glencore statement blamed the cutbacks on the global COVID-19 situation suppressing demand for Australian coal.
Glencore's website lists its operations in NSW as Bulga, Hunter Valley Operations (with joint owner Yancoal), Integra, Liddell, Mangoola, Mount Owen, Ravensworth and Ulan.
Its operations in Queensland are Cleremont, Collinsville, Hail Creek, Newlands, Oakey Creek and Rolleston.
It is understood the production cuts/shutdowns will apply at most, if not all, NSW operations, while the situation at the Queensland mines is unclear.
Sources said it was not a "blanket temporary shutdown".
The production profile at each mine site was different, therefore some sites would "park up" equipment and some may not need to take any action at all.
"In response [to the slump in demand], Glencore is introducing measures to manage our coal production profile, the Glencore statement said.
"This will include a combination of temporary site and equipment shutdowns at a number of operations.
"These measures will enable us to align our production levels with market demand, while providing the flexibility to ramp back up as economies recover from the effects of COVID-19.
"Our focus is on taking necessary steps to continue operations, manage the current market volatility and limit the impact on our workforce.
"Where temporary shutdowns are necessary, these are planned to coincide with the September school holidays.
"Workers will be required to take leave during this time.
"The changes are consistent with measures we have put in place in the past in response to challenging global market conditions."
The Newcastle Herald was referred to remarks made on Thursday evening (Australian time) by Glencore chief executive Ivan Glasenberg, speaking in London, who said the company was looking to cut about 7 million tonnes from its coal production, which totalled about 119 million tonnes last year.
This would take production to 112 million tonnes - most of it thermal coal for power stations and more than half of it from Australia.
But Glencore has also put a slightly different figure - 114 million tonnes plus or minus 3 million tonnes - on its revised forecast, down from 132 million tonnes plus or minus 3 million tonnes.
- The Herald will update the story as more information comes to hand.
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