The decision also reflected the commercial realities faced by the mine after the merger between Glencore and Xstrata, Ravensworth general manager Tony Galvin said in a statement.

“We are making tough decisions to remain viable during these challenging economic times,” he said.

“We are proposing to continue operations on a scaled-down basis, which will mean consolidation of the workforce and, unfortunately, reductions in staff numbers.”

The proposed changes involve a restructure of operations, which will reduce the number of development crews required as well as some maintenance, support and services functions.

Ravensworth has begun consulting with employees and their representatives over the changes, according to Galvin.

“However, we will be providing support for those employees whose positions are affected, including pursuit of all reasonable redeployment opportunities,” he said.

As part of continuing reviews across its business, Xstrata Coal consolidated its two operating units in Australia. The New South Wales and Queensland divisions are now combined under a single Xstrata Coal Australia operating division and management structure.

The new Australia-wide operations are planned to leverage off the structure and systems in place in NSW and are headed by chief operating officer Ian Cribb.

As a result of this decision, Xstrata Coal’s divisional head office in Brisbane closed.

Xstrata Coal reviewed corporate services delivered to the divisions out of its Sydney office. This led to a reduction of Xstrata Coal’s office-based roles in Australia.