Bhp Billiton Plc
BHP Billiton today announced it would close the Tower Colliery, located in
New South Wales Australia, by December 2002.
President BHP Billiton Illawarra Coal Wayne Isaacs said a concerted effort
had been made to reduce operating costs. However this was impacted by
several factors including limited coal recovery capacity and significant
geological problems.
Underground development work will cease in April 2002, at which time 60
employees will become redundant. Tower Colliery currently produces about 1.4
million tonnes per annum of metallurgical coal, predominantly for the Port
Kembla Steelworks. Following closure, this production will be sourced from
BHP Billiton's other collieries in the Illawarra region.
"The social and environmental impact of the colliery's closure has been a
focus point for BHP Billiton, with much effort placed on minimizing the
impact on Tower's employees,"      Mr Isaacs said.
"It is a difficult time, but we will ensure all employee entitlements will
be paid in full, and all suppliers', contractors, and creditors' invoices
will be honored. Transitional counseling and financial planning seminars
will also be available for displaced employees."
Production work will continue at Longwall 20 with a reduced workforce of 75
until the completion of coal extraction in December 2002. At this stage, gas
drainage will cease, longwall equipment will be stood down and ventilation
roadways transferred to Appin Colliery. Remaining employees from the
operation will receive redundancy arrangements at this time.
BHP Billiton is progressively rationalizing its Illawarra coal operations
into increasingly more productive and cost effective operations. As such,
the Group will concentrate on expanding the West Cliff and Appin mines in
the No.1 Seam deposit to achieve maximum synergies and contain costs.
In addition the Dendrobium mine, currently under development, is scheduled
to commence commissioning in 2005. No.3 Seam operations will continue at
Eloura Colliery until reserves are depleted in late 2004.
The strategy is designed to further move Illawarra Coal's operations into
the lower cost quartile while being able to continue the supply of premium
coking coal to customers.
"While the coking coal market is relatively strong at present, we must make
the tough decisions now to ensure Illawarra coal's long term future," Mr
Isaacs said.
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Further information can be found on our Internet site:
http://www.bhpbilliton.com
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