Of the mine’s 330 strong workforce, 250 workers have been placed on "idle" status, but will be eligible to draw unemployment and continue to receive company health care benefits. They will be recalled once the mine resumes full operations.
Workers were evacuated from the mine Friday after the flooding began and no one was injured.
"At no time did the situation pose a safety concern for mine personnel," Jim Walter Resources chief executive officer George Richmond said.
In September 2001, 13 miners were killed in explosions at the mine.
Mining at the No. 5 mine is expected to close in late-2006 or early-2007 and the workforce transferred to the No. 7 mine.
Jim Walter Resources operates three coal mines in Alabama and is a subsidiary of Walter Industries.