Mining companies Rio Tinto and Xstrata have announced job cuts in their respective coal divisions spurred by weak prices in the global market, rising administrative and operation costs as well as the high Australian dollar.

The miners are expected to slash 100 job posts each respectively.

Xstrata said it will merge its NSW and Queensland divisions, and then close its Brisbane office, where bulk of the job cuts would occur.

Those affected in the Rio Tinto job cuts, meanwhile, are mines in central Queensland and the NSW Hunter Valley.

In 2012, Rio Tinto shut down its Blair Athol mine after the deposit ran out of coal, while Xstrata discharged 600 workers from its Hunter Valley and Bowen Basin operations.

Apart from Rio Tinto and Xstrata, Brazilian giant Vale has also been reported mulling the state of its Australian operations after reports last week floated that the latter wants to dispose its minority involvements in the Belvedere and Eagle Downs deposits.

"The Australian coal industry is facing a significant challenge to remain globally competitive due to the combination of high costs, lower coal prices and the strong Australian dollar," a Rio Tinto spokesman said.

"We need to ensure the long term resilience of our operations by taking steps to improve productivity and significantly reduce costs in a range of areas."