The management and corporate service teams of Australia’s Coal & Allied, of which Rio Tinto is a 75.7% shareholder, will be folded into a wholly owned unit of Rio Tinto, Pacific Coal. The new entity will be named Rio Tinto Coal Australia and based in Brisbane.
The agreement puts the management of both companies under one roof, so that the costs of items such as a call centre and mailroom will be shared. The changes take effect in February 2004.
A number of management and administrative jobs are expected to be lost.
Grant Thorne, currently managing director of Pacific Coal, will serve as the managing director of Rio Tinto Coal Australia, and Coal and Allied Managing Director Gary Goldberg will become a senior executive in the new company.
As a result of the changes, Coal & Allied has announced an extra A$11 million in charges, revising its estimated loss for 2003 to A$30 million.
Coal & Allied has been affected by a soaring Australian dollar, lower coal prices and increased shipping costs.
Be the first to comment on "Aussie coal firms merge management"