Glencore is continuing consultation with Bulga underground employees ‎following the decision to place the mine's Blakefield North project on hold, a company spokesman told International Coal News.

“The decision means that Bulga Underground will stop production in 2017,” he said.

“The consultation currently focuses on positions associated with development work at the mine, which will be completed this year.”

The Blakefield North project was due to start longwall production in 2017 and would have extended the life of existing underground operations at the Bulga complex.

The decision has been made as a result of continued low prices in the global thermal and coking coal markets, the company said in a statement.

It is a blow for the Hunter Valley which last year learnt that the Planning Assessment Commission knocked back Anglo American’s proposed Drayton South project with the possible loss of up to 500 jobs.

Operations at Glencore’s Blakefield South underground mine will continue as planned until 2017, when its final longwall panels have been mined.

“Glencore is one of the most efficient longwall miners in Australia, but we are not immune from the ongoing market challenges,” the company said in a statement.

“Unfortunately, the current market does not support the proposed project and we have decided to place Blakefield North on hold until we see improvement in the economic climate.”

Glencore’s open cut mine at Bulga – which last year received regulatory approval to extend its mine life until 2035 – will not be impacted by the decision.