Eagle Downs coal mine, a joint venture between Aquila and Vale, has announced it is cutting jobs and putting the mine into care and maintenance.
Speaking to a source close to the issue, they told Australian Mining that workers were this week told they will be losing their jobs.
"We arrived at the site in the morning and went into a teleconference with Brisbane where we were given a two minute explanation of what was happening, and then walked off site," the source stated.
The announcement comes as the coal mine looks to move into its next development stage.
The source explained that "we were told that there is no money left to develop the operation right now, and that the mine has six months left to find funding or else it will move from care and maintenance and just shut down".
The mine is slated to have a 47 year mine life.
Vale and Aquila have both been contacted for further comment.