Miners walk towards a mine to take part in search and rescue operation for their colleagues trapped in a coal mine after a mining disaster in Soma, a district in Turkey's western province of Manisa May 16, 2014. The operator of a Turkish mine in which 284
Miners walk towards a mine to take part in search and rescue operation for their colleagues trapped in a coal mine after a mining disaster in Soma, a district in Turkey's western province of Manisa May 16, 2014. The operator of a Turkish mine in which 284 people died this week and 18 remain trapped said on Friday the exact cause of a fire was still unclear but that a build-up of heat had caused a partial collapse in the plant. Rescuers were still trying to reach parts of the coal mine in Soma, 480 km (300 miles) southwest of Istanbul, three days after a fire knocked out power and shut down the ventilation shafts and elevators, trapping hundreds underground in Turkey's worst ever mining disaster. REUTERS/Stringer REUTERS/Stringer

About 700 miners or 7 per cent of the 10,000-strong workforce of BHP Billiton Mitsubishi Alliance (BMA) deployed in Queensland would soon lose their jobs.

The company announced on Tuesday that it is axing 700 positions as the response of Australian miners to the weak price of coal in the international market. The move would affect employees and contractors assigned at its Goonyella Riverside, Peak Downs, Saraji, Broadmeadow, Caval Ridge, Daunia and Blackwater mines.

Lucas Dow, asset president of BMA, told ABC, "This is, without question, a very tough decision, and make no mistake, this decision has not been arrived at lightly."

BHP said it would start consultations with the affected workers in the coming weeks. The cost-cutting measures aim to make BHP's operations in Queensland viable for the long term and to make it globally competitive.

From 2008 to 2011, the price of metallurgical coal, used for the production of steel, reached $300 per tonne. Now, it has substantially gone down to $110 per tonne. The 63 per cent reduction in average price of coal resulted in axing of 10,000 mining jobs across Australia the past 12 months and downsizing of operations as well as scaling of expansion plans.

Besides BMA, Bandanna Energy said on Monday that it would cancel plans for its central Queensland mine and enter into voluntary administration.

Darker days loom over the coal sector, with even the UN warning that coal has not future in the global energy mix.

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