Job cuts loom on another mine in the Hunter Valley, this time at the Newstan mine.
Around 100 workers are about to lose their jobs, as mine operator Centennial Coal announced today that the mine will be put into care and maintenance in August.
Although the mine employs 148 people, Centennial said it will redeploy 45 workers to the nearby Myuna mine and retrench the remaining employees.
Centennial has said that new approvals for development of the Newstan Extension project will need to be secured, approvals that relate to expansion into “significant coal resources at Newstan which are in close geographic proximity to local power stations and the Port of Newcastle”.
Centennial Coal’s CEO and managing director David Moult said the decision to close the coal mine is essential if Centennial is to sustain its competitiveness and market position.
“The decision has not been taken lightly,” he said.
“In the current market Newstan’s losses can no longer be absorbed.
Centennial is committed to diligently working through a process that will sensitively support those impacted.”
Centennial said the mine will be maintained and kept for reopening when market conditions improve.
Centennial produces fuel for around 40 per cent of NSW coal-fired electricity, and operates six mines in the state.
Newstan was in care and maintenance from 2009 to 2011.
Centennial was delisted from the ASX in 2010, after which it was bought by Banpu Public Company, a subsidiary of Banpu, the largest pan-Asian coal group.