BHP Billiton and Mitsubishi Alliance (BMA) is planning to cut 700 jobs at its central Queensland mines in Australia due to challenging market conditions.
Following an operational review, both BHP Billiton and Mitsubishi found that the business was overstaffed.
According to BMA, workers at its mines in the Bowen Basin have been advised about the redundancies, which represent about 7% of its workforce.
The company said that the workforce reduction was required to remain viable for the long-term while allowing the company to operate safely.
BMA, which has more than 10,000 employees and contractors, is 50%-owned by BHP with the other half held by Japanese firm Mitsubishi.
The layoffs will affect employees and contractors at the Goonyella Riverside, Peak Downs, Saraji, Broadmeadow, Caval Ridge, Daunia and Blackwater mines, and BMS has said that consultation will start in the coming weeks.
BMA asset president Lucas Dow was quoted by theaustralian as saying: "BMA will continue to work with employees and contractors throughout the process and ensure everyone is treated fairly and with respect.
"We will also keep our community stakeholders informed throughout the process."
Cola prices are currently trading at about $110 per tonne, but according to some analysts it is believed this may fall further due to the weak demand.