The news, broken at a press conference in Mackay yesterday, is the result of a “comprehensive review” of the Bowen Basin open cut and underground mining portfolio.

It also follows recent negative outlooks on China’s steel industry and BHP coal president Dean Dalla Valle’s call that coking coal prices could be subdued for another 12 months.

According to The Australian on Monday, he predicted there would be more mine closures as many were not making money at the existing hard coking coal prices of about $US110 a tonne.

The 50:50 BHP and Mitsubishi owned company, which has a workforce of more than 10,000, said its consultation with affected employees, contractors and union officials would occur in the coming weeks.

BMA asset president Lucas Dow said the cuts were necessary to ensure long-term viability of the business.

“BMA will continue to work with employees and contractors throughout the process and ensure everyone is treated fairly and with respect,” Dow said.

“We will also keep our community stakeholders informed throughout the process.”

Queensland Premier Campbell Newman quickly reacted to the news.

"I am very sad for the men and women who are losing their jobs and my heart goes out to them and their families," he told the ABC.

"I call on BMA to ensure every assistance is given to these workers and their families."

Falling steel demand has already triggered various cutbacks to Queensland’s coal scene with a combined 300 job cuts announced for the Kestrel (Rio Tinto-operated), Clermont (Glencore) and Burton (Peabody) mines in the first week of September.

Over to New South Wales, BHP’s metallurgical coal producing subsidiary Illawarra Coal announced 85 redundancies in late June.

BMA’s mines are Goonyella Riverside, Broadmeadow, Peak Downs, Saraji, Crinum, Blackwater and the 100% fly-in, fly-out Daunia and Caval Ridge operations.

Isaac Regional Mayor Anne Baker took the opportunity to extend her anti-FIFO campaign on the back of the job cutting news.

“We are calling on the premier to review the current conditioning of Caval Ridge and Daunia in relation to 100% forced FIFO," she said according to the Rockhampton Morning Bulletin.

"This is the biggest hit to us this year, it's heart wrenching to see so many community members directly affected.

"It will touch every aspect of our communities and the economic impact will be felt far and wide across the region."

BMA also owns the Hay Point coal terminal in the state.

Hard coking coal prices were more than $300/t during the coal boom times of 2011.