Xstrata has closed down operations until 14 February and locked out miners at its eastern Australia Tahmoor coal mine due to ongoing strikes over an enterprise agreement (EA).
Nearly 380 employees and contractors at the New South Wales mine have been told that production has ceased at the mine until the dispute is settled.
Xstrata Coal has been in negotiations over the past 15 months with the Construction, Forestry, Mining and Energy Union (CFMEU) for a new EA for the mine to replace an outdated model.
The company said the CFMEU executed 850 hours of workplace bans and 320 hours of direct industrial action during the negotiations.
Xstrata's wage proposal involves a 25% hike in the miners' base salary over four years, which, along with other revisions, will translate to a 37% hike in total wages.