Anglo American outlook grim for mining sector - CEO

Mr Mark Cutifani CEO of Anglo American Plc as saying that the outlook is grim for mining as companies adapt to lower prices and weakening demand. It does look pretty grim, certainly for the thermal coal industry.”

Anglo is cutting jobs and halting production at its Aquila coal mine in Australia’s Central Queensland while Glencore Xstrata Plc, the world’s largest exporter of power station coal is shedding staff at its Ravensworth mine in New South Wales state.

Peabody Energy Corporation, the largest US coal company by sales, is cutting 450 contractors in New South Wales. Rio Tinto Group, the world’s second largest mining company has cut about 40 managers and senior staff in its iron ore division in Western Australia, as it seeks to cut USD 2 billion in costs this year across its mining and corporate offices.

Mr Cutifani said that “In the past 12 months alone close to 9,000 mining jobs have been lost in New South Wales and Queensland. Based on current press coverage, those numbers look like they are about to rapidly increase.”

He said that mining companies in Australia were still adjusting to a “slowdown in demand for commodities and lower prices. We need a united plan of attack to counter this.