Anglo-Australian mining giant BHP Billiton said Tuesday it would lay off 700 workers at coal operations in central Queensland as it seeks cost efficiencies to ensure long-term viability.
Coal prices have slumped in recent months and demand from major market China has been falling, while BHP executives have emphasised the need to reduce costs and maximise productivity.
The BHP Billiton-Mitsubishi Alliance, which has seven mines in the resource-rich Bowen Basin, said the job losses were needed to "deliver further cost reductions and productivity improvements and remain viable for the long-term".
"BMA will reduce its workforce by approximately 700 roles and consultation will occur with employees, contractors and their representatives in coming weeks," it said in a statement.
The joint venture is the world's biggest exporter of steelmaking coal.
The decision comes after a review of the mines found that the number of jobs was greater than required, it added.
"With our ongoing focus on improving the productivity and global competitiveness of our business, we continue to assess the most effective way of safely operating our assets both now and into the future," BMA asset president Lucas Dow said.
BHP Billiton owns 50 percent of BMA, which is the largest employer in the Bowen Basin with more than 10,000 employees and contractors at its operations, most of which are open-cut mines.
The announcement follows the loss of more than 160 jobs at a coal mine in New South Wales state in July and 500 jobs in BHP's iron ore division earlier this year.