A NSW government committee, the Market Implementation Group, is examining all aspects of Pacific Power to make recommendations to the government.

Four options are to keep the Powercoal mines as they are, split them off to independent generators on a mine-by-mine basis, retain them under a state-owned corporation, or sell them. The first two options have been rejected by all parties.

The CFMEU has meanwhile conceded that an urgently needed injection of capital would best be achieved by privatisation. As much as $500 million is estimated to be needed to secure the long-term viability of the mines and to develop the Mandalong project.

Workers are also demanding that Powercoal be sold as a single unit and not on a mine-by-mine basis. It is believed this strategy would provide safety in numbers and protect the 1200 Powercoal jobs.

Unconfirmed reports also indicate that faults at Powercoal’s Central Coast Wyee mine may cause the mine to close.

Powercoal operates Newstan, Myuna and Cooranbong collieries in the Lake Macquarie area, which all service Eraring power station; Munmorah and Wyee mines on the Central Coast, which service Vales Point power station; the stalled Awaba colliery in Lake Macquarie, and Wallerawang power station at Lithgow.