In November the NSW Planning Assessment Commission gave the mine approval to mine the first 400m of a proposed expansion panel to save jobs.

Six months later this interim measure was not enough with the expansion project still mired in greentape uncertainty.

“The restructure is a direct outcome of the inability to operate our longwall past the current approved 356m of longwall 6, with the situation causing fiscal stress on the business," Wollongong Coal said last week.

“We have endeavoured to minimise the effect on our employees and will continue to engage 181 employees as we progress with the approval process for the Underground Expansion Project."

The coal miner said it was working closely with both the state and federal environmental departments to gain the expansion project approval required to ensure the viability of Wollongong Coal.

"Given the current pressures nationally on the coal industry and taking into account the delayed approvals for our extensions we have had to make these tough but necessary decisions to ensure the survival of the mine,” the coal company said.

Bob Timbs – the local district vice-president for the Construction, Forestry, Mining and Energy Union – also blamed delays with the state government’s planning regime for the disappointing job cuts.

More than a month ago he warned that the process needed to be expedited to save jobs.

“Obviously the timeframe has been extended to the point where it’s making the viability of the mine questionable,” he told ICN in mid-April.

The 356m of environmental approved coal left in the underway longwall panel is expected to provide breathing space of several months as the mine awaits a verdict on its expansion project which is targeting an increased rate of 4.7 million tonnes per annum run of mine over a five-year mine life.