New research points to more than two thirds of coal is believed to be unprofitable.
Industry research by Wood Mackenzie shows lowering commodity prices for both thermal and coking coal has created an unsustainable market, which would be even worse if maintenance costs were included, according to Fairfax.
This has come despite wider production costs and miners addressing the current oversupply issues.
“Producers have exercised supply restraint; it hasn't been enough to support prices as demand has dropped even more," Bloomberg analysts said.
Anglo American most recently attempted to address the pressure felt in coal, announcing a massive restructuring and massive layoffs.
This massive shift will see the miner shrink its workforce by almost two thirds, from a 135,000 employee business down to less than 50,000 workers globally.
It will also divest or close a number of assets, having pegged some of its Australian thermal coal operations for disposal.
However, it did list Grosvenor, Grasstree, and Moranbah as key assets.
Yet Bloomberg believes this won’t be enough.
"A continuing divergence between the Australian dollar and export Newcastle thermal coal prices may mean more production cuts are announced in the months ahead," the Bloomberg Intelligence report stated.
"A decoupling of coking coal prices from the Australian dollar implies the market is still oversupplied … more Australian capacity cuts are likely if the divergence persists."