BHP Billiton Mitsubishi Alliance or BMA, a joint venture between BHP Billiton (BHP, BBL, BLT.L,BHP.AX) and Mitsubishi Corp. (MSBHY.PK, MBC.L), plans to cease production at Norwich Park Mine indefinitely. The company said Norwich Park Mine has been losing money for several months, as a result of a combination of lower production, a significant increase in costs and lower coal prices. This decision to stop production follows a 7-week review of the mine's viability.
BMA Asset President, Stephen Dumble said, "This decision was not made lightly. However, the impact of last year's floods, combined with lower coal prices and high costs, has resulted in an operation that is not currently viable." Dumble continued, "Importantly, this decision on Norwich Park Mine is not reflective of the broader quality of our world class Queensland Coal operations." It is also noted that the mine would not re-start its operations, until viable solutions are found.
Also, BMA would target to maximise redeployment opportunities for Norwich Park employees to Saraji Mine to enable, where possible, those employees and families to remain living in Dysart.
by RTT Staff Writer
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