About 80 mine workers took up redundancy packages and another 80 took up positions at other Powercoal mines. The discovery of a major fault in the mine's main coal seam prompted the closure, as well as Powercoal’s assessment that the seam was not amenable to longwall mining.
The Australian Broadcasting Corporation reported that the Construction, Forestry, Mining and Energy Union (CFMEU) hoped the operation might be restarted once Powercoal has been privatised by the NSW State Government.
Powercoal produced 8.55 Mt in 2001. Bids for the sale of Powercoal’s six operating mines were expected at the end of June but the entry of late bidders, will delay the process. Parties reported to be interested in the assets are Xstrata, Rio Tinto, and Centennial Coal with the new bidders thought to be Wesfarmers and Anglo Coal. Excel Mining has reportedly decided not to submit a bid for Powercoal assets.
Coal analyst Clyde Henderson of Energy Economics reported the assets and liabilities of Wyee are included in the sale. The mining equipment will be brought to the surface prior to its transfer to the new owner.
At one time Excel Mining subsidiary LakeCoal appeared interested in buying the Wyee operation to extend the life of its newly acquired Chain Valley mine. Henderson said Wyee provided better access to some of the reserves than Chain Valley.
“It would therefore not surprise if some kind of deal on Wyee were negotiated between the new owner of Powercoal and LakeCoal in future,” he said.
