About 700 mining jobs will be shed in central Queensland as BHP Billiton Mitsubishi Alliance (BMA) blames challenging market conditions for the losses.

The company has advised staff at its mines in the Bowen Basin about the reduction.

BMA’s asset president, Lucas Dow, said the coal industry was facing challenging market conditions and the cut to the workforce was needed to ensure the operation’s long-term success.

He also noted the news would have an impact on staff and the community, particularly given BMA is the largest private employer in the Bowen Basin, with over 10,000 employees and contractors on its books.

“BMA will continue to work with employees and contractors throughout the process and ensure everyone is treated fairly and with respect,” Dow said on Tuesday.

“We will also keep our community stakeholders informed throughout the process.”

The company said the decision to axe about 700 jobs came after a review of its mines showed its operational workforce numbers were more than needed to safely and efficiently operate the business.

BHP Billiton has already cut 163 coalmining jobs in NSW at its Mt Arthur coalmine in the Hunter Valley, also citing tough market conditions.

Those cuts followed the loss of 500 jobs at BHP’s iron ore business.

The Queensland premier, Campbell Newman, said he felt for staff who would lose their jobs.

“My heart goes out to them and their families and I call on BMA to ensure that every assistance is given to these workers and their families - that’s what particularly needs to happen right now,” he told reporters in Brisbane.

“They need support, they need assistance to find other jobs and if necessary also assistance in terms of relocation.

“I’m also concerned about regional communities that are going to be impacted as well.”