Jobs on the line at two NSW coalmines

Jobs could be lost at two coalmines south of Sydney as their operator looks to cut costs in response to slumping coal prices.

Wollongong Coal, which is controlled by Indian company Jindal Steel and Power, says it is talking with workers at its Russell Vale and Wongawilli collieries as it looks for ways to reduce its costs.

The mines employ hundreds of workers.

"We are currently conducting an organisational and operational review which may result in some tough decisions," chairman Jasbir Singh said in a statement.

The review is expected to be completed by June, and has been launched in response to coking coal prices hitting a six-year low, he said.

The company is also waiting for approval from the NSW government to continue longwall mining at the Russell Vale site.

It said Jindal Steel and Power was committed to the two mines after recently investing $270 million in the projects.