Western Australia's energy sector is reeling after Premier Coal announced it will slash operations and cut at least 120 jobs.
The move by the Yancoal (ASX:YAL)-owned miner comes as the state government aggressively pursues a transition towards renewable energy, aiming to retire coal-fired power stations by 2030.
The workforce of roughly 500 will be thinned immediately, with contractors and labour-hire staff bearing the initial brunt of the scale-back.
A Premier Coal spokesperson cited a "reduced customer demand" and an extensive operational review as the primary drivers behind the decision.
Reports suggest the mine is currently sitting on surplus stockpiles, leading to rumours of a potential temporary shutdown as early as May.
While the state government has pledged $692 million towards a "just transition", local unions and the Opposition have slammed the management of the phase-out.
AMWU State Secretary Steve McCartney noted that members are "angry" at the unplanned nature of the layoffs, while Shadow Energy Minister Steve Thomas questioned why the government continues to subsidise the neighbouring Griffin Coal mine despite an apparent oversupply in the basin.
As consultation begins with affected workers, the state government maintains it is ready to support the community through what it acknowledges is a "difficult time".