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The steady fall in coal prices has taken a toll on another Australian asset owned by an Indian company.
The 128-year-old Russell Vale colliery, owned by Wollongong Coal in which Jindal Steel and Power has a majority share, has decided to shut operations due to the sharp decline in coal prices in the last few months.
Last month, Australia’s Federal Court overturned the government’s environmental clearance for the Adani Group’s $16-billion Carmichael coal mine.
In 2013, Jindal Steel and Power acquired control of Wollongong Coal to source fuel for operations in India. The company recently said it is looking to divest some of its overseas assets to trim debt of over ₹40,000 crore. The company has mines in Mozambique and Botswana also.
80 jobs cut The shutdown of the Russell Vale colliery, which started operations in 1887, will result in 80 job losses and follows unsuccessful efforts by Jindal to turn Wollongong Coal around, said Milind Oza, CEO of the operating firm, in a statement on Tuesday… we have tried to avoid this unfortunate situation by undertaking a series of workforce restructurings,” it said.
Wollongong Coal reported an A$199.2-million ($142 million) loss in the financial year to March 31, following an A$169.4-million loss in the previous year.
Global metallurgical coal prices have dropped to $85 a tonne from over $300 in 2011.
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