The development contract at Narrabri Mine will cease from March 29 – nine months earlier than expected, Delta SBD said in a statement.

The job had been contracted to end on December 31.

Whitehaven reported last week that it had made a loss of $47 million for the six months to December.

Delta SBD chief executive officer Steve Bizzaca said: “The early cessation at Narrabri is occurring solely to suit the mine’s internal requirements.

“We will remain working at Narrabri with a small group of DSB key personnel from the development contract to be retained post March 29.

“We also have two active tenders with Narrabri for short and long-term work.”

Delta DSB will also deploy some of the affected personnel and equipment to existing projects with other clients outside the Narrabri area and was “already in active discussions with these clients about opportunities for the remaining personnel and equipment”, it said.

Delta DSB’s expectations for the January-June period are set against a framework of current general weakness in the coal industry in Australia.

Its half-yearly profit announcement last week of $5.2 million came on the back of new contracts with Rio Tinto’s Kestrel mine and BHP Billiton Mitsubishi Alliances Broadmeadow mine in Queensland.

“Notwithstanding, the company forecasts a solid half year, with revenue similar to the corresponding period last year. Margins may be pressured downwards compared to the margin achieved in the first half of the financial year,” Delta SBD said.

The news comes after fellow underground coal contractor Mastermyne announced that the early termination of its contract with Centennial Coal’s Newstan Colliery would materially affect earnings in the current half.

Yancoal has also indicated it will be seeking to cut contractors to save money, while Peabody Energy has also embarked on a program of returning some of its mines to owner-operator status.