The company cited continued fall of the global coal market as a reason for the job cuts.
Yancoal would notify the employees about the job cuts and offer voluntary redundancies on the completion of the selection process next month.
Starting 10th August, the Hunter Valley mine will have a five-day week operation, will continue the work at the mine with 108 employees including staff, and shared resources.
Yancoal Australia CEO Reinhold Schmidt said: "This has been a difficult decision for the business and while we have taken every step over the last year to try and avoid today’s announcement, unfortunately we do not have any further options available at this time.
"Our management teams are speaking with employees and ensuring they have access to the necessary external employment, redundancy and counselling services required to assist them throughout the process."
