Glencore Xstrata has announced it is closing its Newlands Northern underground coal mine in Queensland.
According to the miner it is shutting down the operation as it comes to the end of its mine life in 2015.
"As part of the process toward the mine's closure, development activities will cease at the end of June 2014 following the establishment of the final longwall panel," Glencore Xstrata said.
Completion of these development activities will result in the reduction of around 50 positions at the site.
However production will continue until the final coal has been extracted from the remaining longwall panels.
Glencore has already begun consulting with employees affected by the announcement.
Speaking to CFMEU QLD district president Stephen Smyth, he told Australian Mining "we were contacted by Glencore this morning about the closure as part of the consultation process for the winding down to the end of hte mine's life".
"Obviously we're disappointed about the closure, especially in this climate, and Newlands is a close knit community so this will have a major affect on the town and workers," Smyth said.
"We hope that there will be the option of redploying the laid off workers to Oakey Creek North, but we'll have to wait and see as it will all be part of the consultation process."