It is believed the company’s Redpath contractor will suffer the main job losses, with the mine moving from two to one longwall panel.

BHP Billiton would not specify job numbers but confirmed the company was continuing with its drive to reduce operating costs across its Queensland coal operations by reducing the use of contractors.

“We are focused on reducing overheads and operating costs across the business,” a BHP Billiton spokeswoman told ILN. “This includes reviewing contractor arrangements and making the necessary adjustments to ensure operations can remain cost-competitive.”

Chief financial officer Graham Kerr said at BHP Billiton’s interim results in February that the company had saved operating costs of $397 million, including a general reduction of consumables spend across the portfolio and a significant reduction in contractor usage and rates at its Queensland coal operations.

The BHP Billiton Mitsubishi Alliance (BMA) has already started pruning its Queensland portfolio with the decision to offload the depleted Gregory mine, while keeping its options open to develop the adjacent Crinum underground mine.

The conveyor gantry at Crinum South has been partially dismantled prior to relocation to Gregory to feed the Crinum East project.

In October, BMA closed the Gregory open cut mine because it claimed it was unprofitable in current market conditions.

“BHP Billiton confirms that it is investigating potential divestment of the Gregory Crinum mine complex, located near Emerald in central Queensland,” a company spokeswoman told ILN.

“In addition to divestment, the company is assessing options for the Gregory Crinum complex to further extend the operation’s life.”

BHP Billiton reported in February that earnings from its Queensland and New South Wales metallurgical coal mines plunged 106.6%. The company’s met coal division recorded a loss of $US101 million ($A97.6 million) for the six months to December.