Target $18.72, page-10090

WE AUST today (extract):
WHITEHAVEN TO SLASH COAL MINE JOBS
Glen Norris
Whitehaven Coal will cut almost 200 jobs from the two Queensland mines it acquired from BHP earlier this year as it moves to streamline operations.
A Whitehaven Coal spokesman said that following a review of workforce plans it had made the difficult decision to eliminate 91 jobs at the Blackwater and Daunia mines, subject to a consultation process. It also will cut 101 contractor and labour hire roles at the mines.
“This proposed new structure will remove duplication of roles, consolidate teams where logical, minimise unnecessary layers of complexity, and support a clear delineation of roles and responsibilities between site and functional teams,” the spokesman said.
The change would help Whitehaven adopt a more streamlined, operationally focused structure, bringing both mines in line with Whitehaven’s longstanding operating model, the company said.
“It will position our Queensland operations for sustainable success, now and into the future,” the spokesman said. “As we always do, we will continue to review and optimise our operational performance to ensure it is as safe and efficient as possible, in addition to supporting our workforce and all those affected.”
Whitehaven Coal completed the $6.4bn acquisition of the Blackwater and Daunia mines in April, with Whitehaven managing director Paul Flynn saying the deal for the “long-life” metallurgical coal mines in the Bowen Basin was a significant milestone for the company that would effectively double the size of its business and secure employment for more than 2000 workers.
The acquisition of Blackwater and Daunia has transformed Whitehaven into a leading metallurgical coal producer, repositioning its portfolio to deliver sales revenue driven by about 70 per cent metallurgical coal and about 30 per cent thermal coal. Whitehaven last year expressed concerns ‘‘same job, same pay’’ labour hire provisions in the federal government’s new industrial legislation could curtail its operations.
“Labour hire plays an important role in our business model as it provides an entry point for new workers in the industry to progress to a permanent role following training,” Whitehaven Coal general manager of people and culture, Daniel Cram, said.
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Despite uncertainty in the coal sector, Whitehaven’s Queensland mines are expected to play a leading role in meeting strong global steel demand for many years to come, particularly in high-growth market regions such as India and Southeast Asia.
Daunia has an expected mine life of 17 years, while Blackwater has more than 50 years.
In its latest quarterly update, Whitehaven said India’s economic growth was driving underlying demand for metallurgical coal. Whitehaven said it would benefit from the long-term metallurgical coal market through Daunia and Blackwater, which were expected to contribute to earnings in the June quarter. The company reports full year earnings next week.