Sites on the line as coal bosses look at rough patch
Coal giants say the Australian industry is being squeezed to its limit by high taxes and strong local dollar.
The bosses of some of Australia’s largest coal companies have cried out for help, according to reports by News Corp publication The Australian and Fairfax publication The Australian Financial Review.
BHP Billiton and Rio Tinto there will be job losses and mine closures before the end of the year, as the tax and economic situation make it harder to turn a profit.
The two have blamed low coal prices as a key factor too.
“You will see the industry adjust itself, shake itself out. You are going to see more exits from the market,” BHP global coal president Dean Dalla Valle said, according to the AFR.
Rio’s energy chief executive, Harry Keynon-Slaney, agrees that closures are likely, and a “relentless cost drive” becoming necessary for operations to make their money.