The decision comes after a review of the operations that found the business was overstaffed.

BMA said in a statement: "The coal industry continues to face challenging market conditions and had to act to ensure the long-term viability of the business."

Potential layoffs could be at BMA’s Blackwater, Goonyella Riverside, Peak Downs, Saraji, Broadmeadow, Caval Ridge and Daunia mines.

The mines have been hit by poor coal prices currently running at approximately $110 per ton.

Construction, Forestry, Mining and Energy Union (CFMEU) Mining and Energy general secretary Andrew Vickers said: "BHP is spearheading the drive by the multinational coal producers to increase production at lower prices – they are driving the oversupply we are seeing on global markets.

"BHP must be held to account for the fallout from this damaging corporate strategy and ‘review’ of operations."

BHP has noted its coal unit as one of ‘four pillars of growth’ along with iron ore, copper and petroleum products.