YANCOAL will scale back operations at its Stratford and Duralie coal mines at the end of the month.
At least 60 jobs will go from mines as Yancoal cuts production in response to falling coal prices.
Stratford and Duralie general manager Doug Gordon said Stratford - which operates five days a week - would shut its Roseville Pit operation and Duralie would cut production to six days a week.
Mr Gordon said the coal washery would move from seven-day operation to five days a week.
He said the job cuts would come into effect on September 30 and the two operations would still employ 290 people.
“This decision was not made lightly, however in the current economic environment of high operating costs and low commodity prices this action is necessary,” Mr Gordon said.
Despite the production cuts, Yancoal was still seeking approval for an extension to Stratford, which was being assessed by the NSW Department of Planning and Infrastructure.
‘‘The reduction in operational capacity at Stratford and Duralie has no immediate impact on the extension project and Yancoal hopes all necessary regulatory approvals for the project are granted,’’ Mr Gordon said.
Both mines produce a mixture of high-priced coking coal for steel making and lower-priced thermal coal for electricity generation.
Construction, Forestry, Mining and Energy Union district president Peter Jordan said the 60 jobs announced by the company included about 21 staff positions and a handful of jobs from the coal washer, which was run by the company.
He said the two mines operated using contractors, with Tuncurry firm Ditchfield Contracting running Stratford and Leighton Holdings running Duralie.
The decision to cut production across the board at Yancoal was made at the company’s recent half-year results announcement, which saw the company post a half-year operating loss of more than $100 million and an overall half-year loss, after financing costs, of nearly $750 million.
Yancoal bought the two mines when it bought their parent company, Gloucester Coal, midway through last year.
After debuting on the stock exchange at more than $1.20 a share, Yancoal stock has been trading recently at about 65c.