Output at the mine will be slowed down over the next month, and the site will be placed for care and maintenance from late July 2013, in line with mine safety requirements.

Anglo American metallurgical coal business chief executive Seamus French said that the company continuously reviews its operational margins, and since early 2012, it has taken out two million tons of high cost production capacity as part of the review.

The shut down of Aquila mine is the next step in the review process, French noted.

French further said that the company will work with the affected employees at the mine, and will decide on redeployment opportunities as well as redundancy options.

Aquila mine has capacity to produce about 500,000 tons of premium hard coking coal per year.