The Cook Colliery is Caledon’s sole operating asset and source of income. About 85% of Cook’s coal production is sourced from the longwall mining area that has been inundated.

The company said the loss of revenue from its primary production source would have a major financial impact on it and as a result, it had been necessary to implement several measures to reduce expenditure.

“This is not a decision the company takes lightly but is necessary in the circumstances,” it said.

“To alleviate the financial impact on employees, the company will provide affected employees with the opportunity to access accrued annual leave or long service leave entitlements for the relevant period instead of being stood down.”

The company said protocols under the colliery’s Inrush Management Plan were followed and no staff or contractors were injured in the inrush incident.

“Caledon Coal further advises that water inflow to the longwall section of the Cook Colliery has been contained,” it said.

“The water level is being gradually lowered after the installation of additional dewatering capacity following the significant water inflow event that commenced on March 7.

“The inflow originated from an unknown water source and fully inundated the longwall face and equipment.”

A dewatering and assessment process will be required over the coming months after which time the company can ascertain the full impact of the water inundation on the longwall equipment and strata conditions.

“The company then expects to be in a position to make an informed assessment of any longwall production restart and the financial viability of the business,” it said.