Glencore Xstrata cuts 450 jobs

A GLOBAL mining giant will axe 450 jobs at its Queensland coal mines before the end of the year because of the falling coal price.

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GLOBAL mining giant Glencore Xstrata is cutting 450 jobs at two Queensland coal mines in the latest in a string of job losses in the softening resources sector.

Production is being reduced at the company's Newlands and Oaky Creek mines in central Queensland, which will lead to retrenchments by the end of 2013.

"Against a backdrop of lower coal prices, high input costs and the strong Australian dollar, the decision to cut production at the mining operations has been taken to maintain viability in a challenging market," Gleconre Xstrata said in a statement.

At the Newlands mine, 300 jobs are being axed as production is reduced in the underground and open cut operations.

About 150 staff will be cut at the Oaky Creek project as operations are reduced at the Oaky North mine.

Employees were informed of the retrenchments on Thursday.

"This is a difficult decision, but one that needs to be taken in the current challenging economic conditions," Glencore Xstrata said.

Hundreds of jobs have been lost across the country in past weeks as resource companies respond to weaker commodity prices and high costs.

US giant Peabody Energy announced 450 job cuts at its NSW and Queensland coal mines earlier this week, while mining services company Downer EDI is shedding 185 employees working at the Goonyella Riverside coal mine in central Queensland.

Xstrata Coal, a subsidiary of Glencore Xstrata, has also announced plans to cut around 46 workers from its Ravensworth underground coal mine in the NSW Hunter Valley region.

The world's largest gold mining company Barrick has also slashed 65 jobs in Western Australia due to increasing costs and a weaker gold price.

BHP And Rio have also been streamlining their local operations, shedding administration positions.