Mining giant BHP Billiton Limited (ASX: BHP) has announced it will cut 163 coalmining jobs at its Mt Arthur thermal coalmine in New South Wales, highlighting the struggles that are currently facing the mining sector.
Citing a high Australian dollar, plummeting coal prices and a need to remain globally competitive, the job cuts are being made to help ensure the long-term sustainability of its coalmining business. The cuts will help to drive costs lower which will enable it to remain competitive through the difficult market conditions.
Unfortunately, the job losses haven't been restricted to the coal business. BHP has already cut 500 jobs from its iron ore business while the miner announced on Wednesday that further job cuts are possible to make operations more profitable. According to recommendations made to the company to help drive down costs and improve productivity, up to 3,000 workers could lose their jobs in the iron ore division.
BHP's shares have gained 1.6% today, while fellow iron ore miners Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) have also gained 3.2% and 1.4% respectively.
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