The mine, located in the Illawarra region of Australia's New South Wales state, currently produces about 1.4 million tonnes per annum of metallurgical coal for use at the Port Kembla Steelworks.
"Following closure, this production will be sourced from BHP Billiton's other colleries in the Illawarra region," BHPB Illawarra president Wayne Issacs said in a statement.
Development of the underground mine will end in April, with 60 workers to be made redundant, BHPB said.
"While the coking coal market is relatively strong at present, we must make the tough decisions now to ensure Illawarra coal's long term future,'' Issacs said.
BHPB said as part of its mandate to rationalise its Illawarra coal operations it will concentrate on expanding the West Cliff and Appin mines in the No 1 seam deposit.
"In addition the Dendrobium mine, currently under development, is scheduled to commence commissioning in 2005," BHPB said. "No 3 seam operations will continue at Eloura colliery until reserves are depleted in late 2004."
