Mining giant BHP Billiton Mitsubishi Alliance says about 230 employees and contractors will be cut from its Saraji mine in central Queensland.

About 230 coal miners will lose their jobs as part of cost cutting measures at a central Queensland mine.

BHP Billiton Mitsubishi Alliance (BMA) says the job cuts at its Saraji coal mine, west of Mackay, are necessary to ensure the viability of the operation.

An extensive review found there were more workers at the open-cut mine than needed to operate it efficiently, the company said.

It says about 230 employee and contractor jobs are on the chopping block.

BMA asset president Lucas Dow said employees would be consulted to achieve the workforce reduction.

“A recent review of the Saraji mine by the company concluded that a fundamental improvement in the cost base of the open-cut operation is required to ensure that it remains competitive,” Mr Dow said in a statement.

“We want to ensure that the Saraji mine continues to operate viably providing ongoing employment in the local region.”

CFMEU district president Steve Smyth says the union was disappointed to learn of the job cuts on Friday morning.

“Obviously we are disappointed that in the first instance there wasn’t more dialogue about what the issues are,” he told AAP.

“Now we want them (BMA) to comply with the agreement in regards to compensation.”

The union expects the jobs to be shed over the next couple of weeks.

Mr Smyth said the cuts were another blow to the Dysart township, about 250km from Mackay.

Two years ago the small community was left reeling when BMA ceased production at Norwich Park Mine.

BMA says it will keep community stakeholders informed about the workforce changes at Saraji.

Queensland Resources Council chief executive Michael Roche says the job losses at Saraji mine are another unwelcome reminder of domestic cost pressures and soft market conditions.

“There are few other options available to keep an export mine viable under these circumstances and this is a bitter pill to swallow for everyone concerned,” he said in a statement.