Rio Tinto Cuts Jobs in Coal & Allied Industries

Submitted by Share Trading on 25 September, 2012 - 09:59

Mining giant, Rio Tinto (ASX:RIO) is cutting jobs at Coal & Allied Industries division.

  • An unspecified number of jobs will be cut from the division.
  • Rio Tinto owns a 80 percent stake in Coal & Allied, with 20 percent owned by Japan's Mitsubishi Corp.
  • Coal & Allied has a production of about 30 million tonnes of coal annually. The company employs about 1500 people across its three mining operations in the Hunter Valley region of New South Wales.
  • Coal prices have dropped 20 percent this year to under $90 per tonne.
  • Australia is the world's second largest thermal coal producer which is used for power generation.
  • Rio Tinto is facing a drop in coal prices and a high Australian dollar, both which have an impact to its bottom line.