Cambrian said it was implementing “key initiatives” to address the current market environment.

“Making these decisions is never easy … by responding effectively to the current downturn we will be in a position to react positively when conditions improve,” Cambrian chief executive Mark Burridge said.

This week’s cut comes after Cambrian announced last month it had suspended mining operations at Western Canadian Coal Corp’s Willow Creek project, which Cambrian holds a 34% interest in.

Expansion plans at the mine have also been halted, and will be reassessed once “clarity on next year's coal prices and commitments become more visible”

Returns at Cambrian’s West Virginia coal operations, operated by subsidiary Atlantic Development & Coal, are looking healthier in the short term with contracts to supply coal at an average price of more than $US90 per ton, at cash costs expected to be below $70/t.

Cambrian expects to sell 1.4-1.7 million tons at this price.

Beyond contracted volumes, ADC has the capability to produce up to the 2.4Mt which Cambrian said was currently under review.