The announcements come as the industry endures a horror two years of 12,000 retrenchments and ongoing pressure to lift productivity as coal prices remain subdued and the Australian dollar stays stubbornly high.
Wongawilli’s “Old Nebo” operations were most affected by the cuts, with 102 employees made compulsorily redundant.
Wollongong Coal chief operations officer David Stone said voluntary redundancy closed on May 23 with 27 employees accepted at its two Illawarra mines last week.
“At Russell Vale a further 23 individuals were made redundant, this includes eight staff and 15 underground workers,” he said.
Wollongong Coal chairman Jasbir Singh said it was a difficult time for the workers but it was necessary to downsize the workforce to bring the collieries in line with current market conditions and production levels.
“While these reductions in jobs are essential at the moment, Wollongong Coal is committed to further developing and operating their underground operations, despite these unprecedented economic times, which sees current global coking coal market prices at historical lows,” he said.
Singh said the principal shareholder of Wollongong Coal, global Indian steel and power producer Jindal Steel and Power, had confidence in the future of its two Australian mines having invested $290 million in the company to date, including $200 million in 12 months.
Stone said the company would continue to employ 256 people within its Russell Vale and Wongawilli operations.
“We intend on providing a platform for future success with a passionate drive to give the business the capability to deliver world class teams and best in class underground operations,” he said.
The company had all but finalised its review of the business to ensure the long-term viability of its two Illawarra mines, Stone said.
The company will continue with development work at Russell Vale while it waits for state government approval for its longwall 6.
“We have been working hard with the workforce and their representatives to put together workable conditions that allow the company to keep the majority of the workforce, unfortunately this option has been voted down today,” Stone said.
“In an effort to mitigate the effects we are keeping one development crew and the associated support personnel to continue with the transitioning from a longwall operation to a full extraction pillar operation.
“The future of the operation will focus on the successful development and implementation of the Wongawilli South project and we are currently working hard on a detailed approvals process that will provide a long sustainable project.”
New Hope said it had been proactively reviewing its cost structures as a result of the current downturn.
“This review process has identified productivity improvements, which would initially result in a number of positions becoming redundant at both the company’s West Moreton operations and the corporate office,” it said.