AngloAmerican to cut coal output
AngloAmerican (LSE:AAL) plans to implement reductions in coking coal over the next several months with further industry-wide cuts still expected.
The Australian reports that Anglo Coal CEO Seamus French said the company is pursuing a set of near-term output reduction in response to adverse market conditions.
"We are going through a planning process where we will adjust to the market conditions and, in the short term, we will cut back," said French.
Diversified mining giant AngloAmerican is the world's third largest producer of coking coal, a vital ingredient in the steelmaking process, and operates six coal mines in Australia.
Global commodities players have been hampered of late by precipitous declines in commodities prices, with expectations of far worse to come if China experiences a protracted slowdown in growth.
According to the Australian the spot price of coking coal has plummeted by more than half in the past year due to tepid steel demand from China.
Major coal producers have engaged in a spate of cost-reductions and retrenchments in Australia of late, with Rio (ASX:RIO) cutting jobs at its Clermont coal mine in Queensland, following similar moves by Vale (NYSE:VALE), BHP Billiton (ASX:BHP) and Xstrata (LSX:XTA).