The decision to place it under care and maintenance was difficult, said mine and associated cement works operations manager Stuart Hutchings.

“Boral remains committed to its cement operations at Berrima, which employ some 130 staff and continue to make a major social and economic contribution to the Southern Highlands,” he said.

“Instead of using coal from the colliery for cement manufacturing, we will start buying coal from third parties.”

He said a review confirmed that operating the mine was unsustainable.

“This is due to increased costs, in turn making it difficult for Boral to compete with imported cement material, and the flat outlook for cement sales generally.”

The other major consideration was the uncertainty over the mine’s expansion project due to the Southern Highlands Coal Action Group’s successful appeal against the New South Wales government’s approval last year.

“We remain disappointed that, despite a lengthy and rigorous assessment process over more than two years to secure the project approval as granted by the Government’s expert panel in 2012, this approval was overturned by the Land and Environment Court at SHCAG’s instigation,” Hutchings said.

“Although coal mining has been undertaken in the district for more than 100 years, this decision and the subsequent appeal proceedings have placed additional pressure on the Colliery.”

He said more than 30 staff employed by mine-operating contractor Delta Mining would be made redundant. An estimated 38 people worked at the mine to produce about 220,000 tonnes per annum of coal for the cement plant.

Boral’s expansion project aimed to extend the mine for up to eight years and more than double output to 460,000tpa with some exports targeted through Port Kembla.

Mining at the Southern Highlands site first started in 1872 when it was known as the Rockroof Colliery.

The village of Medway was developed in 1926 to service the mine, which was acquired by Boral in 1988.