Coal mine closure sign of times

THE announced closure of the Wilkie Creek thermal coal mine near Dalby is another disappointing turn in the fortunes of the export coal industry, Queensland Resources Council Chief Executive Michael Roche said today.

"The announcement is a sad blow for the region but also indicative of the challenging outlook for the thermal coal industry in particular," he said.

"It’s no secret that a number of mines in Queensland and New South Wales are walking a financial tightrope as a result of subdued global demand, inherently high production costs and a stubbornly high exchange rate.

"At some mines operations are continuing only because it is more expensive to walk away from take or pay contracts for rail and port services.

"Cost cutting is the only the mechanism available to coal companies to ride out the downturn that we estimate has cost more than 8000 positions in Queensland since mid-2012," he said.

www.qrc.org.au

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