Strategically RCR will re-organise its business to reduce its exposure to coal mining services, it said in a statement.

“The Australian coal industry has suffered significantly over the past five years with low profitability and capital investment,” it said.

“RCR has maintained its support for this industry with a number of significant regional operations and investment in people, equipment and premises.

“The continued pressure on service providers to reduce pricing is unsustainable and provision of services is unlikely to return a profitable business in the foreseeable future.”

In total RCR will close fourteen local and two international unprofitable businesses as part of its re-organisation.

The one-off non-recurring impact for closing the discontinued operations is currently expected to be approximately $35 million for this financial year of which around $10 million is non-cash in FY16.

The discontinued operations had budgeted revenue of approximately $100 million and therefore the closures come with a reduction in revenue, mainly mining services and associated losses.