Xstrata has halted production at an Australian coal mine following industrial action over wage disputes.

The Bulga mine in eastern Australia saw a 48hr strike over the weekend.

Following news this would be extended by a day, Xstrata decided to cancel all output.

Workers want to see more than a 15% rise in base salary for the next three years.

Bulga produces about eight million tons of thermal coal each year of the nation’s 270 million-ton production.

Xstrata is one of world’s largest thermal coal exporters, with 30 coal mines throughout Australia.

It also has operations in Chile, where workers at its Altonorte Metallurgical Complex stopped work over wage negotiations late last year.

Workers at the mine, however, voted in a 2% adjustment to base salaries among other conditions earlier this year, ending a strike that lasted since 28 December.