India-based Jindal Steel and Power has decided to close the Russell Vale colliery coal mine Australia, due to mounting losses following a slump in commodity prices.

Located 100km south of Sydney, the mine is being closed, as its operator Wollongong Coal reported widening losses.

Wollongong Coal chief executive was quoted by Reuters as saying that the closing of the mine will result in 80 job losses.

"This decision is not taken lightly and we have continually attempted to avoid this unfortunate situation by undertaking a series of workforce restructurings."

According to Wollongong Coal, some employees at the Russell Vale Colliery will be retained for care and maintenance activities.

In 2013, Jindal Steel purchased a majority interest in Wollongong Coal, in addition to gaining management control.

Wollongong Coal also owns and operates R Wongawilli Colliery in the Southern Coalfields region of New South Wales.