ONE of Queensland's biggest thermal coalmines has cut 100 jobs and some production and says more jobs will go if coal prices fail to recover from 2 1/2 year lows.
News of the job cuts at the Ensham mine near Emerald by Japan's Idemitsu comes after US coal giant Peabody Energy last week warned Australian coal production could start to be reined in at current prices and Rio Tinto said it would have to cut jobs at its Clermont coalmine in Queensland.
"The number of contract staff at the Ensham mine has been reduced by approximately 100," Ensham Resources chief executive Peter Westerhuis said.
"With the thermal coal price depressed, some areas of the mine are currently uncompetitive."
The mine is 85 per cent owned by Idemitsu and South Korea's LG also has a stake.
"With low prices and increasing input costs, the decision to bring forward the conclusion of a mining services contract has been required to maintain the business on a profitable footing," Mr Westerhuis said.
"If the price stays as low as it is, we will have to review further parts of the business, but we haven't made any decisions yet."
Mr Westerhuis would not say how much production would be cut at the mine or how much the mine was currently producing.
It is understood that even before the cuts, the mine was producing at less than the 7 million tonnes a year rate that was the last disclosed on the company website.
Newcastle thermal coal prices have slumped 30 per cent in the past six months and were yesterday at $US83.25.
ANZ yesterday cut back its price forecasts for thermal coal, which is used in power stations, because of weak Chinese demand and ample Chinese thermal coal and hydro power supply.
The bank said it now expected coal to average $US90 a tonne in the final quarter of the year, down 10 per cent from previous targets.
"Encouragingly for suppliers, a floor appears to have formed, with spot prices falling below the top end of the industry cost curve," ANZ said.
"The outlook for most of 2013 will also be capped while Chinese coal supply and hydro power availability remain at healthy levels."
Peabody president Greg Boyce said last week that some of Australia's high-cost mines could start to cut back production because of lower prices.
Peabody itself is forecasting production of between28 million and 30.6 million tonnes this year, down 2 million tonnes from a previous forecast.
