The 80% share of the mine has been up for sale since February, along with other assets including Chain Valley Colliery, Wallarah Colliery, the Catherine Hill Bay coal preparation plant and the self-discharging vessel MV "Wallarah". Earlier, privately owned company York Mining was named preferred tenderer but the deal fell apart when York was reportedly unable to agree acceptable arrangements.

Wallarah Coal JV general manager Peter Hayes said BHP Billiton had made available substantial additional financial and people resources to the mine during the last six months to improve the development rates in the new area of the mine but was still experiencing very slow mining rates due to the high roof support density required in this area. Hayes praised the "splendid efforts of the highly skilled and industrious workforce in such adverse mining conditions".

Consultation with the workforces and their representatives has begun to determine the best way forward, Hayes said. However, unless a practical, financially viable alternative emerges from this process Moonee will cease development in the near future and the final longwall block, No 7, will be extracted by mid-2002. It appears that the mine is at a crisis point and, despite the best efforts of the workforce and management, may not have long-term viability.

Meanwhile, the new potential buyer, who wished to remain anonymous, has signed a heads of agreement with BHP Billiton.