BHP Billiton may cut coal output at big Australian coal mine

|About: BHP Billiton Limited (BHP)|By:, SA News Editor

BHP Billiton (BHP -0.3%) may cut production at its Goonyella Riverside coal mine in eastern Australia after announcing the termination of a mining service contract to cut costs amid a sharp drop in coal prices.

Two years remained on the contract for pre-strip work and were worth ~A$360M; the termination, effective Sept. 9, will result in 427 contractors leaving the site.

Goonyella Riverside produced 12.4M metric tons of met coal in the year to June 2013, and BHP says output in the current FY will be unaffected by the contract termination.