Glencore is consulting with its Collinsville workforce as the operation scales back production.
Collinsville will cease production for three weeks over the Christmas period, with most employees taking annual leave during this time.
The company said in a statement, that lower coal prices and market oversupply have contributed to Collinsville incurring financial losses during 2015.
Glencore will phase down overburden removal next year from the Bowen Basin mine and only produce coal from in-pit inventory and field stockpiles.
The operational changes at Collinsville are expected to affect around 180 positions across the 230-strong workforce, reductions are scheduled to commence March 2016.
Glencore has support services in place for employees and their families who are affected by the decision, and will look at options for redeployment where possible.
The situation at Collinsville reflects the challenges being faced by all Australian coal mines in one of the most difficult markets in the industry’s recent history.