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BHP Billiton may cut coal output at big Australian coal mine

  • 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.
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