BHP Billiton to cut 700 jobs at coal mine in Australia

Mining giant BHP Billiton said Tuesday it would lay off 700 workers at coal operations in central Queensland in Australia as it seeks cost efficiencies, with weakening demand from China sending prices tumbling.

The move comes as BHP executives have emphasized the need to reduce costs and maximize productivity in order to ensure long-term viability.

The BHP Billiton-Mitsubishi Alliance (BMA), which has seven mines in the resource-rich Bowen Basin, said the job losses were needed to "deliver further cost reductions and productivity improvements and remain viable for the long term."

"BMA will reduce its workforce by approximately 700 roles and consultation will occur with employees, contractors and their representatives in coming weeks," it said in a statement.

The joint venture is the world's biggest exporter of steel-making coal.

BHP Billiton owns 50 percent of BMA, which it said is the largest employer in the Bowen Basin with more than 10,000 employees and contractors at its operations, most of which are open-cut mines.

The announcement follows the loss of over 160 jobs at a coal mine in New South Wales state in July and 500 jobs in BHP's iron ore division earlier this year.

"BHP is spearheading the drive by the multinational coal producers to increase production at lower prices - they are driving the oversupply we are seeing on global markets," said Andrew Vickers at the Construction, Forestry, Mining and Energy Union.

The announcement comes at a time of growing momentum towards low-carbon power production to fight climate change.