SWISS mining giant Xstrata will take control of Collinsville Coal Mine away from Thiess as it fights to have the project turn a profit.
In a statement from Xstrata, Collinsville Mine - northwest of the Central Queensland coastline - is described as having "suffered substantial financial losses" although these are blamed on lower coal prices, the high Australian dollar and high operation costs.
Xstrata has owned Collinsville for the past decade, but has left the day-to-day handling to Thiess.
By dumping Thiess and taking over, Xstrata hopes to "restore the mine's viability".
In its media release, the company describes working closely with Thiess in deciding the future of the mine, but said Collinsville required "a more comprehensive reorganisation".
Xstrata will take control later this year.
Update your news preferences and get the latest news delivered to your inbox.