Sumitomo Corp and Vale have decided to close the Issac Plains coal mine in Queensland, Australia, due to coal prices declining to a ‘level below the initially anticipated range’.

The Issac Plains coal mine is a 50:50 joint venture between Sumitomo and Vale Australia.

Sumitomo said in a statement: “In response to the recent downturn of the international coal market, Sumitomo Corporation has announced its decision to place the Isaac Plains coal mine in care and maintenance, with plans to cease operations by end of January 2015.”

“Closure of the mine will result in a loss of approximately $274m for the company.”

According to the employment data released by the Queensland Government last year, Issac Plains is estimated to employ around 300 workers, reported The Sydney Morning Herald.

The mine produces both thermal and coking coal, and recorded an output of 210 million tonnes in the financial year ending March 2014.

Closure of the mine will result in a loss of approximately $274m for the company.

Sumitomo’s announcement comes amidst its full-year profit forecast, which is expected to come down from JPY250bn ($2.28bn) to JPY10bn ($91m).

The company has also forecasted a JPY50bn ($457m) loss from its Brazilian iron ore project due to the fall in prices of iron ore.

“Divestment of certain fixed assets and the impairment loss in certain coal mining projects in Australia will be recognised due to the decline in prices for coal to a level below the initially anticipated range,” Sumitomo added..

“In addition, possibility of impairment losses in the iron ore project in Brazil and the tyre business in the US are expected to occur, depending on future market conditions and business performance.”