Whitehaven Coal (WHC.AX) has announced it will cut 192 jobs at the Daunia and Blackwater coking coal mines recently acquired from BHP Group (BHP.AX). This decision comes as part of a restructuring plan aimed at streamlining operations after the $4.1 billion acquisition, completed in April.
The job cuts include 91 positions directly across the Daunia and Blackwater operations and 101 contractor and labor hire roles. A spokesperson for Whitehaven stated that the restructuring aims to eliminate redundancy, consolidate teams, and clarify roles between site and functional teams.
These layoffs add to the growing number of job losses in the Australian resources sector this year. The relationship between Whitehaven and the workers transferred from BHP may be strained, especially after previous complaints regarding the lack of benefits post-transition.
BHP recently faced its own job cuts, affecting nearly 3,000 roles due to a temporary suspension of its Western Australia nickel business. Additionally, Alcoa (AA.N) has cut over 1,000 jobs following the closure of its Kwinana alumina refinery.
Whitehaven is also in the process of divesting a 20% stake in the Blackwater mine, with reports indicating interest from India’s JSW Steel (JSTL.NS).
Despite the job cuts, Whitehaven’s shares rose by as much as 2.9% to A$7.54 during the trading session, ultimately closing 1.8% higher at A$7.46.