Whitehaven Coal is cutting jobs at its coal handling and preparation plant at Gunnedah in response to “tough” coal market conditions.
The company would not specify the exact number of people it would let go, but confirmed a “small number” of employees would be affected following a structural review of the plant.
A spokesman said the cuts were aimed at reducing costs and increasing efficiencies at the site.
"These are not easy decisions, but it is essential that Whitehaven structure its workforce to meet the challenges the coal industry is facing, and to ensure the long-term sustainability of the business as a whole," the company said.
A voluntary redundancy scheme is in place, and some workers have been offered redeployment at other sites.
"Whitehaven remains a very significant employer in the Gunnedah Shire and the company is committed to developing and maintaining a locally-based workforce where possible."
Talks with staff members continue, with the review set to continue until the end of the month.