“Redpath Australia is contracted at the Gregory Crinum Mine to provide development driveage services,” a Redpath spokeswoman said.

“Over the last 12 months two contractor development panels have been required to establish the Crinum north production area.

“The mines development program now requires one contractor development panel to sustain longwall production.

“This change now sees Redpath return to the base contract numbers at the Gregory Crinum Mine.

The spokeswoman was not willing to release the exact date the employees were let go, only confirming that 70 employees, down from an initially speculated 80, were “released” by BHP, with seven of them being subcontractors.

“Redpath is actively trying to place these employees within our other projects,” she said, but was unable to confirm where the company was considering.

BHP Billiton would not specify job numbers when the news broke on Wednesday but confirmed the company was continuing with its drive to reduce operating costs across its Queensland coal operations by reducing the use of contractors.

“We are focused on reducing overheads and operating costs across the business,” a BHP Billiton spokeswoman told ILN.

“This includes reviewing contractor arrangements and making the necessary adjustments to ensure operations can remain cost-competitive.”

Chief financial officer Graham Kerr said at BHP Billiton’s interim results in February that the company had saved operating costs of $397 million, including a general reduction of consumables spend across the portfolio and a significant reduction in contractor usage and rates at its Queensland coal operations.

BHP Billiton reported in February that earnings from its Queensland and New South Wales metallurgical coal mines plunged 106.6%. The company’s met coal division recorded a loss of $US101 million ($A97.6 million) for the six months to December.