Around 200 Golding contractors at the Curragh coal mine are facing layoffs after Currgah ends its contract with the company.
The miner announced it will finish its overburden contract with Golding on 13 December, according to the Morning Bulletin.
The announcement comes a month after Curragh announced it was cutting back contractors from a seven to a five day roster.
At the time it said that as a result of these changes there "will be a reduction in contract labour hire workers on site and the use of contractors at the mine will be reduced".
Now Wesfarmers Curragh general manager Craig McCabe has confirmed the reduction of the use of contractors.
"When we announced the changes at Curragh back in early October, we said there would be a reduction in the use of labour hire and contractors at the mine, and while we have been very pleased with the Golding's performance, the reality is that we needed to make some significant changes to our operations to remain competitive in the current market.
"This is part of a range of measures we are taking at the mine which includes a reduction in contract labour hire, roster changes for some employees and a limited shut down for some mining operations over Christmas," McCabe said.
Curragh was unavailable for comment at the time of publication.
Last week fellow coal miner Anglo American announced it was trimming staff numbers at its Grasstree mine.
According to the CFMEU, Anglo is also set to slash around 35 contractor jobs.
Speaking to Anglo American, they told Australian Mining that the "Grasstree mine has completed an organisational review due to current market conditions and changed its rostering requirements".
"As a result of this, some contractor and workforce roles will be reduced over coming weeks and some redundancies will be issued. Anglo American is working closely with our employee representatives and our workforce throughout this process."