World's largest seaborne exporter of thermal coal, Xstrata has indicated that it will cut around 600 jobs in its Australian operations under a restructuring plan.

The company will begin the consultation process immediately for the proposed layoff. The cut will affect both external contractors as well as full time employees of the company’s Australian coal operations. The company has indicated that some cuts will be at corporate headquarters in Sydney and also at Queensland offices.

The company said, "Although we are not breaking down the reductions by individual site, the restructure is focused on scaling back high cost production at some of our mines.”

Many believe that the resource boom in Australia, which helped the country better face the effects of a global economic slowdown, might be getting over. The mining industry is losing its momentum mainly due to weak demand from prime customer, China.

There have been major roll backs of projects and cuts in the country. BHP Billiton last week cancelled the $20 billion expansion of the Olympic Dam site and this has raised concerns over the future of projects including the expansion of Port Hedland iron ore export facilities.