The redundancies come after an internal review, which identified a number of key changes to be made, including equipment performance and cost reductions across the site, to ensure the long-term sustainability of the company’s coal mining operations.
BHP NSW energy coal asset president Peter Sharpe said: "The coal industry continues to experience difficult market conditions, including continuing low coal prices and a high Australian dollar and in order to remain globally competitive, the cost base of our Mt Arthur Coal operations must be reset."
"The purpose of this transformation exercise is to ensure that our operations remain sustainable for the long-term, and we will continue to assess opportunities and make the necessary adjustments."
BHP Billiton coal president Dean Dalla Valle earlier said, "Over the past 18 months we have focussed on our cost base throughout our operations and there is still more we need to do as we continue to look for ways to improve the productivity and competitiveness of our mines."
BHP NSW energy coal unit has a workforce of around 1,900, including contractors.
Last month, the company revealed plans to cut 3,000 jobs in the iron ore division, which employs 16,000 people, in order to cut costs, according to a report by Australian Broadcasting Corporation.