XSTRATA Coal has suspended operations at the Oaky No1 underground coal mine in central Queensland due to reduced demand for hard coking coal.
The move has cost 40 full-time employees their jobs and slashed nearly 190 contractor positions.
Xstrata Queensland chief operating officer, Ian Cribb, says demand and sales are falling due to the continuing global crisis and downturn in steel and manufacturing industries.
"We are taking decisions in the face of weaker demand for coking coal,” he said.
Cribb says the company will continue to invest in the Oaky No1 project and will implement a development unit to ensure the company is “well positioned to respond” when demand improves.
The company’s Oaky North longwall is continuing operation as usual.
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