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GLENCORE

Glencore to close Aussie mines for Christmas

Swiss mining and commodities giant Glencore Xstrata says it will close its Australian coal mines for three weeks during Christmas owing to weak prices and oversupply.

Glencore to close Aussie mines for Christmas
Photo: AFP

The shutdown will start in mid-December and affect the company's 13 mines, which have 8,600 workers and produce more than 80 million tonnes of thermal and coking coal, across the states of New South Wales and Queensland.
   
"Glencore has decided to implement production shut downs across our Australian coal operations for three weeks commencing mid-December," the company said in a statement issued on Friday.
   
"This is a considered management decision given the current oversupply situation and reduces the need to push incremental sales into an already weak pricing environment," said the company, based in the Swiss canton of Zug.
   
"We remain confident in demand growth for our products and believe that the supply and demand balance will be restored in the medium term."
   
However, union leaders have reacted angrily as it is understood full-time staff will be required to take leave during the period. And those with low holiday balances would have to bring forward leave from next year.
   
It is not yet clear what pay arrangements would be put in place for casual and contract staff.
   
The miners' union CFMEU said Glencore did not consult workers about the shutdown and the firm could be in breach of workplace arrangements.
   
"It demonstrates the arrogance of management, who could have negotiated with workers to find mutually suitable ways to reduce production — like letting workers take public holidays," CFMEU national president Tony Maher said.
   
Glencore said the temporary closures were expected to reduce its Australian output by about five million tonnes.
   
Australian thermal coal prices remain close to five-year lows as Chinese demand weakens.

Prices slumped to about US$62 a tonne in October from US$120 three years ago.

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GLENCORE

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore

At least 19 illegal miners were killed on Thursday after part of a copper mine collapsed in southeastern DR Congo, Swiss-based mining giant Glencore said.

At least 19 illegal miners killed at subsidiary of Swiss-based Glencore
Photo: AFP

The incident happened when two galleries caved in at a mine in the Kolwezi area operated by Kamoto Copper Company (KCC), a subsidiary of Glencore.

“Tragically there were 19 fatalities today, with possible further unconfirmed fatalities,” Glencore said in a statement, which said there had been recurrent problems with illicit mining on its concessions.

Other reports suggest the death toll could be higher. 

The Congolese site Actualite.CD reported at least 36 deaths.

“The illegal artisanal miners were working two galleries in benches overlooking the extraction area. Two of these galleries caved in,” the company said.

Glencore said KCC had observed a “growing presence” of illegal miners, with on average 2,000 people a day intruding on its operating sites.

“KCC urges all illegal miners to cease from putting their lives at risk by trespassing on a major industrial site,” Glencore said.

Illegal mining is common and frequently deadly in Democratic Republic of Congo, where safety is often poor and risk-taking high.

Figures indicating the scale of the problem are sketchy, given that many mines are illegal and remote.

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