Earlier this month a Glencore spokesman said workforce consultation had only just started and he could not provide site-by-site specifics.

“We can tell you, though, that operational changes will be introduced across all 13 mining complexes, and that this will include changing rosters and parking up equipment at some sites,” he said at the time.

“We are also not contesting reports suggesting up to 120 positions may be impacted across our coal business.”

The spokesman has now confirmed the ball is rolling.

“Glencore has begun implementing changes across its Australian coal operations to reduce 2015 production by 15 million tonnes,” he told ICN.

“Consultation with employees at all sites, particularly those where workforce numbers will be affected, will be ongoing as we roll out these changes during the course of 2015.”

Scepticism of Glencore implementing the full 15Mtpa of cuts has emerged in the industry and from some analysts. Macquarie Wealth Management believes the announcement was timed in late February to help support thermal coal prices ahead of annual contract talks with Japanese utilities – based on the Japanese financial year which begins on April 1 with the total export trade equating to about 60Mtpa.

The 13 mining complexes include the Oaky Creek, Newlands, Rolleston, Clermont and Collinsville operations in Queensland and the Bulga, Mangoola, Liddell, Ulan, Mt Owen/Glendell, Ravensworth, West Wallsend and Tahmoor operations in NSW.

The Oaky Creek complex in the Bowen Basin, consisting of two longwall operations, is the only hard coking coal-focused complex with the cuts widely expected to hit thermal coal output.

A cut of 15Mtpa is more than 20% of Glencore’s total coal output in Australia.

Glencore is tipped to land an annual thermal coal benchmark settlement of $US70 a tonne with Japanese utilities according to the “median of five analyst estimates compiled by Bloomberg News” – with such a price being the lowest since 2009 and 14.4% down from the $81.80/t settlement a year ago.