Faced with low prices and weak demand in an oversupplied market, the Australian coal industry must seek to further reduce its costs. The paper examines minesite competitiveness of the open cut coal industry in Australia with some references to the coal operations of M.I.M. Holdings Limited. The make-up of F.O.R. mine costs is analysed in order to identify where efforts should be directed to maintain competitiveness. The scope for mine site improvements through changes to working practices, the application of new technology and cost management is examined.