BHP Billiton plc (NYSE: BHP) today announced the closing of its Norwich Park metallurgical coal mine in Queensland. The mine is one of six owned and operated by a 50/50 partnership between Billiton and Japan’s Mitsubishi.
In its announcement of the closure, Billiton said:
This situation has come about as a result of a combination of lower production, a significant increase in costs and lower coal prices. … The decision to cease production follows a seven week review of the mine’s viability. The review could not establish any immediate remedies that would allow the operation to sustainably return to profitability.
About 1,400 employees will lose their jobs as a result of the closure. Of that number about 500 are Billiton employees and the others are contractors. Heavy rains and flooding last year hurt production at the mine, and labor issues have affected all six of the partnership mines.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
