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Wollongong dismisses last employees at Russell Vale

16th September 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Embattled miner Wollongong Coal on Wednesday sent the last 36 permanent workers at the Russell Vale coal mine, in New South Wales, home.

Earlier this month, the ASX-listed company announced that difficult operating and financial conditions had forced the suspension of mining operations at Russell Vale, with the mine placed on care and maintenance.

At the time, Wollongong said the company would continue to seek government approval for the expansion of the Russel Vale underground mine, which was aimed at increasing production at the mine from one-million tonnes a year to about three-million tonnes a year of run-of-mine coal and would include an upgrade to surface infrastructure and coal extraction from eight longwalls in the Russell Vale east area.

The New South Wales Planning Assessment Commission (PAC) held public hearings for the project in February but, in April, determined that more information on the project would be required.

Wollongong expected the expansion project to be referred back to the PAC for determination later this year.

Miner’s union CFMEU said on Wednesday that despite the company’s insistence that it would pursue the underground expansion of Russell Vale, permanent workers at the mine had been given no assurances that they would be re-employed should the expansion proceed.

“The company has repeatedly refused to provide a written undertaking that if the Russell Vale coal mine extension is approved, the retrenched local workers would be the first in line for future jobs at the mine,” said CFMEU mining and energy division South West district VP Bob Timbs.

“We know that Wollongong Coal has boasted in a report to shareholders that closing its Wongawilli mine and terminating the permanent workforce was 'paving the way’ for reopening the mine with a cheaper, casual workforce.”

Timbs said the company’s refusal to guarantee the use of permanent, local employees all but confirmed that Wollongong Coal was pursuing the same approach at Russell Vale as it had employed at the Wongawilli mine.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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