The decision was attributed to low coal prices and a strengthening Australian dollar, with directors agreeing last week to place the mine on care and maintenance.
Receivers and administrators appointed to determine the future of the mine site, said employees will get all their entitlements. A creditors' meeting will be held to discuss debts to local contractors of up to $4 million.
The mine, near Singleton, opened in August 2001, and at the time was producing around 5000 tonnes per week of high-grade semi-soft metallurgical coal. Estimated reserves measured 235Mt.
The main body of the lease, to the north-west, was thought to be amenable to longwall mining with recoverable resources of over 200Mt. The long-term plan was to access reserves beneath the now closed Ravensworth open cut mine and eventually introduce longwall equipment.
