Appreciating Australian dollar and declining growth in the mining sector across the globe have further forced the company’s hand as it following other mining company’s such as Xstrata in laying off workers to reduce costs.
The number of jobs to be slashed, however, remains undisclosed; including some at the three Coal & Allied mines located in New South Wales.
Prices for thermal coal have declined over 20% to below $90 a metric ton as a result of reduced supply from Australia following lowered demand from China.
Rio Tinto said in a statement to Reuters, "We are working to improve our competitiveness by actively seeking ways to reduce costs across our business, which unfortunately means some roles will no longer be required."
The company operates the Coal & Allied mines, in which it owns an 80% stake with Japanese Mitsubishi owning the remaining 20%.
