Bowen Coking Coal, which also owns the Burton coal mine, said lower prices for its pulverised coal injection product, higher costs and lower-than-forecast production had combined the force the decision.

PCI coal is used in steel production and is a high-quality thermal coal that is used to reduce the use of more expensive coking coal.

BCC said the mine would shut by the end of November. The mine was only opened in 2022 and was aiming at production of more than 1 million tonnes a year.

“Following a strategic review … suspension of mining at Bluff mine prior to the wet season will allow the company to focus on its flagship Burton mine where lower mining costs, infrastructure advantages and rising coal prices will deliver stronger returns on investment,” the company said.

Despite the shutdown, infrastructure would remain at the Bluff site to help in eventually re-opening when PCI prices recover.

Chief executive Mark Rushton said the Bluff mine was a good asset in the right market.

“It has a finite resource which is best served (by) selling into a strong pricing environment, not a weak one,” he said.

“Bowen is taking prudent and responsible action to weather softer pricing, tighter labour markets and increasing input and operational costs for Bluff.”

He said the company would work with its contractors, HSE and Qube, to help with redeployment of the workforce.