Glencore is cutting jobs at its Tahmoor underground coal mine in the Illawarra.
According to the miner it is a response to "significant economic pressures presented by the difficult Australian coal market".
As such it has cut one of the mine's development crews, which will end work on 1 July.
The announcement affects around 40 workers at the site.
"We appreciate that this may be a difficult time for some of our employees and their families," the company said in an official statement.
"Support services are being put in place for Tahmoor employees affected by the changes and redeployment options across Glencore's Australian operations are being investigated."
Glencore's latest move comes as nearby miner Wollongong Coal cuts 152 workers from its Wongawilli and Russell Vale coal mines.