It would appear mining companies are continuing to maintain, if not lifting production levels in the face of declining returns.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The same strategy seems to be taking place with iron ore production which is not surprising given two of the largest local coal producers Rio Tinto and BHP Billition are also two of the country’s largest iron ore producers.
This strategy may be the answer to their current problems but one would question how putting extra coal into an already flooded market can help their cause.
Union officials have questioned the strategy in particular how if affects jobs.
On the one hand mines are increasing production and requesting State Government approvals for mine extensions and or modifications and at the same time cutting their workforces.
By way of comparison agricultural producers with the exception of wool growers have no choice but to send their products to market due to their shelf life.
But would it help our coal producers if production levelled out for awhile until either our dollar became lower or the market became less over supplied.