The proposed plans come after a review, and are part of efforts to ensure long-term sustainability.
Full-time and contract workers in the production and maintenance departments will be affected.
BHP Billiton NSW energy coal asset president Peter Sharpe said: "The Australian coal industry continues to experience difficult market conditions, including continuing low coal prices and a strong Australian dollar.
"We have made progress at Mt Arthur Coal in our efforts to reset our cost base, but regrettably, an additional 150 roles will be made redundant by the end of February 2015 as a result of further operational efficiencies."
The mine will continue to operate with approximately 1,500 people and support the Muswellbrook community, local groups and community organizations.
Over the past two years, more than 4,000 coal production jobs have been lost in the region, according to NSW Minerals Council.
NSW Minerals Council CEO Stephen Galilee said: "Dealing with these tough times is being made tougher due to NSW Government policies that include a broken planning system that refuses important projects like Drayton South that would protect and save Hunter jobs."
