More job losses announced as adjustments in NSW coal continue

Port Waratah Coal Services and Centennial Coal have both announced reductions in their workforces as the NSW coal industry continues to adjust to extremely challenging market conditions.

 

It is expected that 34 people will be affected in the Port Waratah Coal Services changes at its Kooragang and Carrington terminals, including 12 operators, nine staff and 13 long-term contractors. 

 

Port Waratah Coal Services CEO Hennie du Plooy says the job cuts are part of a larger review of the business to cut costs and improve efficiencies, echoing the statement from Centennial regarding Newstan mine last week.

 

‘‘PWCS is like any other company in the coal industry, it is under the same pressures of low coal prices and a high Australian dollar,’’ Mr du Plooy said.

 

Despite the fiscal challenges facing the business, he added that the affected employees are at the top of his agenda.

 

“These decisions are not taken lightly or easily. Our priority through this process is to look after the welfare of our employees.”

 

It comes in the same week as the announcement that around 100 jobs would be lost at Centennial Coal’s Newstan operations in western Lake Macquarie. The mine is being moved into care and maintenance as the company can no longer absorb losses from the mine against its other Lake Macquarie operations in current market conditions.

 

Newstan currently employs 148 people. Around 45 members of the existing workforce are expected to be redeployed to Centennial Coal’s Myuna Mine while the remaining employees will be offered redundancies. 

 

Centennial Coal is still seeking approval from the NSW government for two developments at the mine, should market conditions improve and demand rise. 

 

July has been a difficult month for NSW Miners with 163 job losses announced BHP Billiton’s Mt Arthur Coal on 3 July and another 95 on 29 July*.

 

However, not all news has been negative with production rising to record levels at Whitehaven Coal, leading to a sharp increase in the company’s share price. 

*This article was edited on 30 July to reflect a further 95 job cuts announced at BHP Billtion’s Mt Arthur Coal.