Glencore: Mining giant to assess need for second shutdown due to coronavirus for year’s end
It’s all a bit up in the air during the current COVID-19 pandemic, but a September school holiday shutdown for Glencore mines could extend to a second shutdown over Christmas/New Year.
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Mining shutdowns for Glencore operations could extend across the Christmas/New Year break in a bid to manage market volatility during the COVID-19 pandemic.
Announced last week, Hunter Valley miners could be forced to take annual leave, with the mining giant detailing shutdowns at most NSW and QLD coal mines in the September school holidays.
Although, it won’t be a blanket temporary shutdown across all operations, with shutdowns depending on each mine sites production profile.
The company indicated in a statement released on Friday, production cutbacks were necessary due to the COVID-19 pandemic which has suppressed demand for Australian coal exports.
This week Glencore also revealed a shutdown over the Christmas/New Year period is also an option that will be assessed, on a site-by-site basis.
It will be designed to ensure operations continue, with limited impact on the mining workforce.
“These measures will enable us to align our production levels with market demand, while providing the flexibility to ramp back up as economies recover from the effects of COVID-19,” said the statement released on Friday.
“Our focus is on taking necessary steps to continue operations, manage the current market volatility and limit the impact on our workforce.
“The changes are consistent with measures we have put in place in the past in response to challenging global market conditions.”
CFMEU northern mining and NSW energy district president Peter Jordan said they support the September shutdowns to ensure jobs are protected.
“Workers will be able to use leave entitlements during the shutdown period,” he said.
“The Union supports this approach as a way to protect permanent and contractor jobs at a time of economic volatility affecting global demand for coal.”
It’s likely to affect Hunter Valley mines including Bulga, Hunter Valley Operations, Integra, Liddell, Mangoola, Mount Owen, Ravensworth, Ulan, Mount Owen and Glendell.
Other mining companies have not yet followed suit, but like Glencore, are remaining vigilant to the ongoing COVID-19 crisis.
Yancoal — who operates Mount Thorley/Warkworth mine and Hunter Valley Operations — said in its latest quarterly report, the health and well-being of all Yancoal employees remained a key focus.
“Pleasingly, the work practices and measures we implemented to mitigate COVID-19 related risks have so far proven successful, with no known COVID-19 cases across our workforce and minimal disruption to our operations to date,” it stated.
“We are closely monitoring the state of international coal markets and critical supply chains to assess how the pandemic is likely to impact on our business over the remainder of 2020 and beyond.
“The supply and demand dynamics resulting from COVID-19 will continue to influence both thermal and metallurgical coal prices significantly.”