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Russell Vale uncertainty peaks

WOLLONGONG Coal is seeking voluntary redundancies ahead of an expected April 10 Planning Assessment Commission verdict on the underground expansion project for its Russell Vale longwall mine.

Blair Price
Russell Vale uncertainty peaks

Wollongong chief operating officer David Stone told the Illawarra Mercury on Friday that the Russell Vale mine will shut down over Easter, forcing most workers to take leave.

He also revealed that voluntary redundancies were offered and with those interested needing to accept them before April 10.

Stone did not reveal a job cutting target but it seems like a significant number of job losses could be on the cards. He confirmed to the newspaper that a restructure was required regardless of the PAC decision.

"Wollongong Coal is in an ongoing discussion with employees about ways it can restructure the workforce as it seeks state and federal approvals," he said.

"We've put some options to limit the effect on people."

A Wollongong spokeswoman has not challenged the claims raised in the press report either. She said the company considered releasing a statement after the weekend election but had decided not to do so.

ICN understands that the workforce negotiations have been ongoing throughout this week so far.

The PAC decision on Russell Vale has been delayed more than once with Planning Minister Pru Goward initially wanting the review done by March 20.

The expansion project is targeting an increased rate of 4.7 million tonnes per annum run of mine over a five-year mine life.

Of the eight longwall panels planned, PAC tentatively gave permission for Wollongong to mine the first 400m of one of them in November on the grounds of saving jobs.

However, the commission did complain that the “employment justification” was wearing thin as company gained its third “incremental modification” using this approach.

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