Mining giant Glencore expects to achieve 50 per cent more cost savings after being boosted by strong coal prices.
As part of a two-year cost-cutting drive the Anglo-Swiss firm had expected to save around $300m (£235m) by the end of the year but could now make savings of more than $450m, it said on Wednesday.
Its mine unit costs are expected to fall to $49 per tonne in 2019 for its operations in Australia, South Africa and Columbia, from a forecast of $52 per tonne for 2018,
“(The firm has achieved) strong unit cost performance despite material cost headwinds from energy, royalties and higher consumable costs,” the company said in a presentation to analysts in Melbourne.
The company said it expected to produce 145m tonnes of coal in 2019, which could generate $6.2bn in EBITDA earnings at a price of $108 per tonne of Newcastle coal.
Earlier this year the FTSE 100 company acquired the Hail Creek mine in Australia and a 49 per cent stake in the Hunter Valley Operations from Rio Tinto.
The joint venture with Yancoal Australia has already cut almost a fifth of its workforce and removed 13 per cent of trucks without affecting production, Glencore said.