Wollongong Coal has announced mining operations at the Russell Vale Colliery will be suspended, resulting in the loss of 80 jobs.
The troubled company made the announcement to workers this morning.
‘‘This decision is not taken lightly and we have continually attempted to avoid this unfortunate situation by undertaking a series of workforce restructuring,’’ Wollongong Coal chief executive Milind Oza said.
‘‘With the extraction of longwall 6 at the Russell Vale Colliery complete and the company experiencing significant losses, ongoing operations at the colliery are simply not sustainable at this point in time,’’ Mr Oza said.
The changes will affect operators, electricians, fitters, deputies and other staff.
A small team will be retained to undertake care and maintenance activities.
Mr Oza pointed to the ongoing delays in the approval of the company’s Underground Expansion Project (UEP) as a major obstacle to the mine moving forward.
Wollongong Coal expects the UEP will be referred back to the Planning Assessment Commission for determination later this year.
‘‘While this is a very sad day, we are absolutely committed to the region for the long-term, with the company having already invested over $400 million over the past two years,’’ Mr Oza said.
‘‘We will be doing absolutely everything we can to ensure this operation which has been in existence since 1887 will be able to provide ongoing employment and support for the local community.’’
Mr Oza said Wollongong Coal would continue to seek approval for the UEP at the Russell Vale Colliery, which will allow us to recommence extraction of high-quality coking coal which is in high demand by the global steel market.
‘‘This approval will pave the way to the beginning of a continued long term future in the region and we will continue to work closely with the NSW Government to ensure this can happen,” Mr Oza said.
Wollongong Coal is currently discussing the changes with employees, the Construction, Forestry, Mining and Energy Union and Association of Professional Engineers, Scientists & Managers, Australia.
