QCoal has wound down its second and last production unit at the Cook Colliery underground mine near Blackwater.
The independent Queensland coal miner cited increased production costs and market pressures on top of the current State coal royalty regime as forcing the closure.
Operated by Core Crew on behalf of QCoal, the site employed about 170 workers until the first production unit closed in September this year, costing about 80 jobs.
The underground coal mine will now go into care and maintenance with the loss of a further 70 jobs.
QCoal said the difficult decision to close Cook Colliery came after the company purchased the mine in 2020 and reopened it for production in 2022.
Cook Colliery contributed $25 million in royalties to the Queensland Government since that time, despite never making a profit in that time, the company said.
“Unfortunately Cook Colliery has been adversely affected by high production costs and low coal prices, and its ongoing operation is unsustainable,” a QCoal spokesman said.
“The current royalty regime in Queensland also makes it very difficult to justify the continued operation of loss-making mines.”