Sixty mining contractor jobs will be lost at Glencore's Glendell open cut mine as a result of the ongoing impact of COVID-19 on the coal industry.
It follows an announcement last month that most of the company's Hunter operations would be shut-down to coincide with this month's school holidays.
Glendell staff were advised on Tuesday about the further cost-cutting measures to be introduced after the temporary shutdown.
"In response to ongoing impacts of COVID-19 on global markets, Glendell will also park up two of the site's five excavators from November," a spokesman said.
"Full-time employees working in these excavator crews will be re-assigned to other areas of the operation but, unfortunately, the changes will affect approximately 60 support roles provided by contractors."
Glencore operates 11 mines that export through Newcastle and six in Queensland.
The Hunter and nearby mines are the Bulga, Glendell, Liddell, Mangoola, Mount Owen, Ravensworth and United Wambo open-cuts, the Integra and two Ulan underground mines and the Hunter Valley Operations open-cut, a joint venture with Yancoal holding 51 per cent.
CFMEU Northern Mining and NSW Energy District President Peter Jordan said the union had hoped Glencore's temporary shutdowns would have been enough to prevent further job losses.
"It further highlights the precarious position of contractors in the mining industry, many of whom are employed as casual labour hire workers with no job security," he said.
"Many casual contractors have been loyal employees at Glendell for years but they will have limited ability to claim entitlements.
"The union will do everything we can to protect the jobs and entitlements of all mineworkers, permanent and contractors, at this time."
Export prices for thermal coal have fallen dramatically in recent months as a result of the COVID-induced industrial downturn
The situation for exporters to China, which includes Glencore, has been made tougher following an escalation of Chinese import restrictions.
While unofficial limits are often imposed in China as a way to support its domestic miners, a souring of diplomatic relations between Canberra and Beijing this year over calls for a coronavirus inquiry prompted the Chinese government to instruct state-owned utilities to avoid Australian coal in particular - favouring Indonesian or Russian cargoes instead.
Revenue from Glencore's sales of Australian thermal coal - coal used to generate electricity - was 23 per cent lower in the past six months compared to the prior year due to lower demand and prices.
Glencore is the biggest thermal coal producer in the NSW Hunter Valley. During the previous downturn in the coal market in 2015 Glencore cut coal production by 15 per cent.
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