The project has stalled because of activist legal action which has now with to the High Court and the State Government has refused to grant approvals while court cases hang over the project.

The decision is the first major move by its new chief executive Reinhold Schmidt, a former Yancoal executive who only took control of New Hope in September.

The project has been in the approval process for about 13 years, but remains politically sensitive because Acland is in a crucial agricultural area. Acland is also thermal coal which has been targeted by activists.

The expansion project has split the community with many of the mine workers also running farms.

New Hope said the redundancies at head office would be voluntary, but it will also mean that the majority of executive positions will be lost.

In a statement to the ASX, New Hope said the changes would result in a more streamlined management structure.

“With the ongoing uncertainty around approvals for New Acland we have had to refocus and out the business in the best position to go forward,” Schmidt said.

“We have had to make some extremely tough decisions but, in reality, even if we were granted approvals for stage three, we are in for a tough couple of years until we ramp up again.”