Peabody Energy Corp and Glencore Xstrata have announced cuts in Australia's mining jobs. Peabody will let go of 450 jobs while Glencore Xstrata will cut 46 mining jobs in Ravensworth.

Prices of thermal coal dropped more than 30 per cent during the last two years, prompting coal miners to implement cost-cutting measures by reducing their labor force. Current price for thermal, commonly used in generating power, is US$80 per tonne. Cooking coal prices also suffered the same fate with a drop of 40 per cent to bring the price down to US$130 per tonne.

Charles Meintjes of Peabody Energy Corp said contractor jobs contribute to the high spending of the company. Meintjes said to mining publication Australian Mining that in the coming weeks, 450 mining contractors will be terminated.

The job cuts are expected to affect Queensland and New South Wales where Peabody produces thermal and cooking coal.

Glencore Xstrata will only have 130 employees after cutting the jobs of 26 per cent of its labor force. An unnamed company spokesman says the job cuts would reduce the total coal production of the mine. He declined to reveal exact figures but 2012's production was estimated to be 2.2 million tonnes of cooking coal.

Since late 2012, Glencore Xstrata has laid off 700 employees. In a statement late last year, the company had planned to let go of 100 more jobs.

Newcrest Mining cuts more jobs overseas

After cutting jobs in Australia, Newcrest Mining is set to lay off hundreds of employees in Papua New Guinea, where the company gets half of its mine assets.

Newcrest Mining's share price dropped by 7.92 per cent or down to $9.53. The company's share price went as high as $30 eight months ago. Newcrest will cut 150 jobs from the Lihir gold mine which has a 3,000-strong labor force. About 90 per cent of them are locals and 2,000 contractors either live or fly in and out of Papua New Guinea. Newcrest's job cuts in Australia and Papua New Guinea are mainly caused by the significant drop in the price of gold.

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