Illawarra Coal ceased production at New South Wales mine Elouera in June this year, in-line with the opening of the new Dendrobium mine. All employees were offered a voluntary redundancy package or employment elsewhere within the company.

However, strong commodity prices have now made the Elouera longwall economically viable and Illawarra has appointed Delta Mining as the full operator of the site and its associated stockpile facilities.

The mine will be renamed and Delta Mining will provide all management and operational

personnel, including up to 80 mineworkers. However, Illawara Coal will retain ownership of the mine lease, and upon completion of the contract ownership will revert to Illawarra Coal.

Delta Mining director Glyn Dawkins said employment of Delta labour for the project would commence in October, with development of the first longwall panel commencing early-November.

Privately owned Delta was formed seven years ago and currently employs 180 people within Illawarra Coal operations.