Thin Seam Mining was contracted by Allied Coal to extract hard coking coal from the 1.2m thick Balgownie seam, using American designed equipment. Thin Seam Mining is made up of experienced US miners who planned to prove their technology in Australia, where thick seam mining is more prevalent.

To date the mine has performed well, with three shifts where production exceeded 100m.

Thin Seam Mining general manager Earl Cook said in NSW coal seams of 1.5m and less were not counted as part of the mineral resources. The thin seam mining method made accessible additional coal resources which were previously overlooked.

However, in the wake of the closure of the Bellambi West mine by owner Allied Coal, the future of the thin seam mine is uncertain. Discussions held last week between the administrator, unions, and Thin Seam Mining about the Gibson's mine future remain unresolved.

Cook was hopeful the problems would be resolved so the 30-person operation, could continue.