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Australian coal producer New Hope cuts more jobs

• Monday, October 19, 2020
• Source:ferro-alloys.com

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[Ferro-Alloys.com] 

Australian coal producer New Hope is planning to cut 75pc of all corporate staff, including in its marketing and exploration sectors, adding to previous job cuts at its New Acland mine.

 

The company said it will undergo a significant restructuring, with up to three quarters of the workforce at its corporate office, equivalent to around 90 positions, to be made redundant by the end of November.

 

This means around 200 jobs will have been lost at New Hope in the past 12 months once the new round of cuts is complete. The company made about 120 staff reductions at New Acland in Queensland, where coal output has fallen in the past year and an expansion is being held up by a legal battle with local community groups.

 

The changes will create a more streamlined management structure by removing many executive positions, New Hope said. It will leave chief executive Reinhold Schmidt and the chief financial officer as the only members of the executive team, with legal and marketing executive positions to be cut.

 

"With the ongoing uncertainty around approvals for New Acland we have had to refocus and put the business in the best position to go forward," Schmidt said. "We have had to make some extremely difficult decisions but, in reality, even if we were granted approvals for stage three (at New Acland) today, we are in for a tough couple of years as we ramp up again."

 

The Labor-led state government in Queensland has not approved the expansion of the New Acland mine, which is located near agricultural land, amid the court cases. Queensland's opposition party, the Liberal National Party (LNP), has said it would approve the expansion if it wins the state election on 31 October.

Source: Argysmedia

 

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