More than 100 West Coast jobs will go as a result of Solid Energy reducing its production by 20 percent at its Stockton open-cast mine.
Since the end of last year, 80 jobs had been cut, with 50 more disappearing over the next four months, Solid Energy chief operating officer Barry Bragg told the Westport News.
Most of the jobs would be lost through attrition, he said.
More job losses could be on the cards after the company signed new coal contracts for lower prices next month, or when a new mine operating regime began in October, Mr Bragg said.
However, construction of a new $100 million processing plant had resulted in 30 new jobs and a further 50 people would be employed at the plant's peak, he said.
The company was bracing itself for a fall in demand for coal with sales due to drop from 1.65 million tonnes to 1.3m to 1.4m tonnes as a result of reduced demand from Japan and South Africa where steel industries had been hit hard by the recession.
Meanwhile, in August Solid Energy was expecting to sign a contract with Australian company Downer EDI, which would go into alliance with them and manage and operate the mine.
Solid Energy had written to all employees asking them to register their interest in working with the new alliance.
