The companies said that the Isaac Plains coal mine will be placed under care and maintenance. Operations will be suspended by January 2015-end.
A Sumitomo spokeswoman was quoted by The Australian as saying that the mine produced 210 million tons for the year ended March 2014.
Sumitomo has revised its consolidated earnings forecasts for the year ending 31 March 2015 from JPY250bn ($2.28bn) to JPY10bn ($91m).
The company expects impairment loss of around JPY170bn ($1.55bn) in the Tight Oil Development Project in the US as well as in certain coal-mining projects in Australia due to a dip in coal prices.
"In addition, possibility of impairment losses in the iron ore project in Brazil and the tire business in the US are expected to occur, depending on future market conditions and business performance."
Located 7km east of Moranbah in the Bowen Basin, Isaac Plains Coal mine utilizes pulverized coal injection method and produces thermal and coking coal.
