Operations at Wongawilli colliery have halted after its service provider was placed into voluntary administration, Wollongong Coal has confirmed.
Administrators have stood down Delta SBD’s workforce – meaning work at the Illawarra coal mine have stopped temporarily.
Delta, which employed more than 300 coal miners across the Illawarra region, has been contracted at Wongawilli colliery since July 2016.
John McInnerney and Said Jahani of Grant Thornton have been appointed to the administration proceedings.
A period of administration typically takes five weeks.
“[Wollongong Coal] is in discussions with the administrators with a view to putting in place arrangements to reinstate the contractor’s workforce necessary to recommence the provision of the mining services at the Wongawilli Colliery,” a company spokesperson said.
The future of Wongawilli Colliery was in doubt after the mine was placed into care and maintenance in August 2014, but reopened after it was given approvals for a time extension modification.
In the winter of 2016, Wollongong Coal announced it would contract some of its work at the mine out to Delta SBD, creating up to 70 mining jobs at the time.