ABC Online cited BMA spokesman Lucas Dow as saying that BHP Billiton’s subsidiary would slash the jobs due to high cost pressures in the coal sector.

"We’re continually reviewing and identifying opportunities to improve the productivity and cost effectiveness of our business," Dow added.

"This is one example of us continuing to focus how we make the business viable, sustainable and with future for the Saraji mine."
More than 10,000 workers are employed by BHP and Mitsubishi in the Bowen Basin coal mines.

Queensland Resources Council chief executive Michael Roche said the BMA’s decision to cut jobs follows domestic cost pressures and soft market conditions.

"There are few other options available to keep an export mine viable under these circumstances," Roche added.

The job cuts decision at Saraji mine come regardless of BHP and Mitsubishi opening a new and highly efficient mine at nearby Daunia in mid 2013 and plan to open mine toward the end of 2014 at nearby Caval Ridge.