Prior to this, the company will suspend development work at the mine in Queensland’s Bowen Basin in June 2014, putting 50 jobs at risk.

Glencore said it is consulting with workers over the closure plan; however, production at the site will continue until the final volumes of coal have been extracted.

Construction Forestry Mining Energy Union of Queensland President Stephen Smyth was quoted by Australian Mining as saying that the company has contacted the union over the closure.

"Obviously we’re disappointed about the closure, especially in this climate, and Newlands is a close knit community so this will have a major affect on the town and workers," Smyth added.

"We hope that there will be the option of redploying the laid off workers to Oakey Creek North, but we’ll have to wait and see as it will all be part of the consultation process."

Earlier this year, Glencore announced plans to shut its Ravensworth coal mine due to high costs and strong Australian dollar.

In June 2013, the company laid-off 300 workers at Newlands and Oaky Creek mines citing higher production costs and weaker coal prices.