We report on two XMM-Newton observations of the low-mass X-ray binary X 1254-690. During an XMM-Newton observation of the low-mass X-ray binary in 2001 January a deep X-ray dip was seen while in a second observation one year later no dips were evident. The 0.5-10 keV EPIC spectra from both non-dipping intervals are very similar being modeled by a disk-blackbody and a power-law continuum with additional structure around 1 keV and narrow absorption features at 7.0 keV and 8.2 keV which are identified with the K alpha and K beta absorption lines of Fe XXVI. The low-energy structure may be modeled as a 175 eV (sigma) wide emission line at ~0.95 keV. This feature is probably the same structure that was modeled as an absorption edge in an earlier BeppoSAX observation. The absorption line properties show no obvious dependence on orbital phase and are similar in both observations suggesting that the occurrence of such features is not directly related to the presence of dipping activity. Narrow Fe absorption features have been observed from the two superluminal jet sources GRO J1655-40 and GRS 1915+105, and the four low-mass X-ray binaries GX 13+1, MXB 1658-298, X 1624-490 and X 1254-690. Since the latter 3 sources are dipping sources, which are systems viewed close to the accretion disk plane, and the two microquasars are thought to be viewed at an inclination of ~70 degrees, this suggests that these features are more prominent when viewed at high-inclination angles. This, together with the lack of any orbital dependence, implies a cylindrical geometry for the absorbing material.
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