The coking coal mine in Wollongong was closed in June, as planned, following the commissioning of the Dendrobium operation. Both mines target the Wongawilli coking coal seam.

Elouera has been in care and maintenance since then but some reserves remain. Given the current high prices producers are receiving for coking coal, extracting these reserves is an attractive option for a smaller company.

BHP Billiton Illawarra is currently negotiating a deal with contracting company Delta Mining to extract Elouera’s coal. The restart date is unclear but could be as little as a month away.

Though it refused to confirm the deal, the Picton-based contractor will reportedly resume operation of the longwall for a further three to five years.

This is believed to be the first time BHPB has farmed out underground operations to a contractor.