Another 84 Hunter mining contractors will lose their jobs in the new year due to the ongoing impact of the coal industry downturn combined with the COVID-19 pandemic.
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A new mine plan for Hunter Valley Operations mine to be implemented from January requires fewer mining, coal preparation and maintenance workers.
The mine is a joint venture between Chinese-Australian coal firm Yancoal and UK-Swiss mining company Glencore.
"Hunter Valley Operations has initiated discussions with the mine's workforce on changes that will be made to the mine's coal processing requirements from January 2021 as a result of ongoing economic and energy demand impacts arising from the COVID-19 pandemic," a mine statement said.
"The changes will not impact HVO's permanent workforce numbers but some contracting roles in the mining, coal preparation and maintenance areas will not be required under the revised production plan."
The job losses follow the loss of 60 mining contractor positions at Glencore's Glendell open cut mine in September.
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The company operates 11 mines that export through Newcastle and six in Queensland.
Construction, Forestry, Mining and Energy Union Northern District President Peter Jordan said the union had been in discussions with Glencore about workforce changes at Hunter Valley Operations.
"It is terrible news that 84 contractor jobs will be lost from HVO in the new year," he said.
"These are important local jobs and we are hopeful these workers will be redeployed to other mines in the region."
He said coal mining had held up relatively well compared to other industries during the pandemic.
"We've seen how important the industry is for jobs and economic activity during a recession, however, we are seeing some jobs impacted with global uncertainty affecting export demand," he said.
"We urge all employers in the industry to consult with us about workforce impacts."
Export prices for thermal coal have fallen dramatically as a result of the COVID-induced downturn.
NSW Budget papers show a "much weaker outlook for coal" had prompted a cut in the forecast for coal royalties to $1.4billion, down from almost $2billion.
"Demand for thermal coal as an energy source has been weakening, driven by competition from other sources, the widespread substitution away from coal-fired electricity generation into technologies fuelled by increasingly competitive liquid natural gas and renewable energy," the budget papers say.
The situation for exporters to China, which includes Glencore, has been made tougher following an escalation of Chinese import restrictions.
While unofficial limits are often imposed in China as a way to support its domestic miners, a souring of diplomatic relations between Canberra and Beijing this year over calls for a coronavirus inquiry prompted the Chinese government to instruct state-owned utilities to avoid Australian coal in particular - favouring Indonesian or Russian cargoes instead.
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