Peabody Energy is cutting production and jobs from its Metropolitan Mine in New South Wales.
The company confirmed the mine will transition to a five-day production schedule over the next month, meaning employee and contractor reductions of 20 -25 per cent.
“These actions are part of a plan to increase productivity, improve cash flows and optimize production at Peabody’s Australia operations given current market conditions,” Peabody said.
CFMEU south-western district vice-president Bob Timbs said the cuts could lead to 70-80 job losses.
Timbs said the company was offering up voluntary redundancies first.
"Next week, they work out who they will or won't accept for voluntary redundancies. If there's a surplus in the numbers they need, they have to sit down with us to talk about mitigating forced redundancies,” he said.