Glencore is cutting 80 jobs at Collinsville mine as it reduces production at the site by two million tonnes.
The company said the move was in response to ongoing economic challenges caused by lower coal prices as a result of an oversupply in the global export market.
Glencore said the mine will operate at reduced capacity for the rest of 2015 as it looks at alternative marketing opportunities and a revised mining plan.
“We have support services in place for those employees and their families who are affected by the decision, and we will look at options to redeploy people to other Glencore operations,” a spokesperson said.
“It is a particularly difficult decision given the significant effort and the improvements made at Collinsville over the last 18 months in attempting to turn around the mine’s financial position.
“The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry’s recent history.”
Stephen Smyth, CFMEU Queensland district president, said the job cuts would have a negative effect on local businesses.
"Whether they live the community or not, they're there when they are on their rosters, they're there when they're at the mine,” Smyth said.
"Obviously it'll have a flow-on effect onto services, but some of the details are scant, we're not actually sure who they are”