PERTH (miningweekly.com) – Mining giant Rio Tinto’s coal arm said this week that even if the legal battle to gain approval for the Mount Thorley Warkworth mine was won, the victory might be too late to save 1 300 jobs at the project.

Coal & Allied has launched an appeal against the New South Wales Land and Environment Court’s decision to overturn a 2012 development consent for the Warkworth extension.

If the appeal was successful, the most likely outcome would be returning to the Land and Environment Court to have the relevant point re-heard, potentially by the same judge, Rio said.

Energy CEO Harry Kenyon-Slaney noted that, even if successful, the appeals process could take months and could come too late to avoid impacts on production and jobs at Mount Thorley Warkworth.

"We are committed to doing everything we can to avoid the loss of production and associated jobs for our workforce of 1 300 people at Mount Thorley Warkworth mine and that is why we are proceeding with this appeal,” he said.

"However, we've already spent close to four years trying to secure approval for this mine extension and it is unlikely the legal system can deliver an outcome in time to avoid impacts on Mount Thorley Warkworth.”

Kenyon-Slaney added that the legal blow that Rio was dealt in April was now forcing the company to operate in a reduced footprint, which impacted productivity and drove up costs.

“If this continues, it will be impossible to maintain production levels at the mine which, in turn, means fewer jobs,” he warned.

Rio was continuing to review the situation at Mount Thorley Warkworth mine with the goal of protecting production and jobs as much as possible, Kenyon-Slaney said.

“The workers at this mine are doing everything within their power to combat the challenging environment confronting the Australian coal industry. They are delivering outstanding production in a bid to keep the operation profitable and it would be very sad to see their jobs taken away by the Land and Environment Court's decision.”

The extension plan would see mining operations continue to 2033, producing 18-million tonnes a year of run-of-mine coal.