The company wants to transfer workers from its Wongawilli operation to nearby Russell Vale after deciding that it was uneconomic to mine the Old Nebo workings, chief operating officer David Stone said.

“We have worked closely with the workers representatives at a local and district level and presented several options to negate the need for any forced redundancies,” he said.

Stone said management was assessing the response to its voluntary redundancy scheme, which closed on Friday.

With the closure of the VRS, management would determine an “appropriate and sustainable course of action with an intention of keeping any forced reductions to an absolute minimum”, Stone said.

“Market prices are the main driver of our current detailed and structured review of existing operations and projects,” he said.

“Wollongong Coal and its principle shareholder are staunchly committed to developing and operating their underground operations, despite these unprecedented economic times which sees current global coking coal market prices at historical lows.”

Stone said that in the immediate future the company intended to develop roadways in preparation of the recommencement of longwall operations at Russell Vale and was also fast-tracking the Wongawilli South underground project, which would provide a sustainable future for the mine and deliver a world-class underground operation.

Until the completion and approval of the new Wongawilli South project, the remnant mining that had been occurring in the Old Nebo workings was uneconomic for either longwall or partial extraction with continuous miners.

“The current intent is to leave the old longwall equipment in Nebo in-situ at this time with a recovery process developed but on hold until market conditions change,” Stone said.

“We intend developing the old workings for future continuous miner full extraction once the correct cost structure can be obtained.”