MINING giant Xstrata will sack about 600 of its workforce in Australia as part an ongoing review of its business.

The company, which took over MIM and is one of the biggest mining companies in the world with 70,000 workers globally, has mines in Mt Isa, Cloncurry and the Bowen Basin.

It said it was undertaking a planned restructuring to respond to industry-wide pressures including low coal prices, high input costs and a strong Australian dollar against the US dollar.

"Following this review, and in keeping with the cost savings objectives announced at our half-year earnings, we will be reducing our employee numbers by approximately 600," it said.

"The reductions involve both contractors and permanent positions."

"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.

"We do not expect a material impact on Australian production volumes. We are also reducing some roles at our corporate headquarters in Sydney and consolidating our office-based operations in Queensland.

"Our approved growth projects, such as Ravensworth North, Ulan West and our expansion at Rolleston, are proceeding as planned, and remain on budget and on schedule. Feasibility studies into our Wandoan Project continue, to enable an investment decision once relevant approvals have been completed and market conditions permit.

"Ongoing reviews continue across the business to ensure that Xstrata Coal retains a highly competitive cost position in the current market environment. If further adjustments are required, an announcement will be made at that time."

Originally published as More mining jobs slashed