Wongawilli mine provides major economic boost to Illawarra

More than 100 jobs and millions of dollars will soon be injected into the Illawarra’s economy with the official opening of the NRE Wongawilli underground coal mine by Minister for Mineral Resources Ian Macdonald today.

The Wongawilli mine is located 12 kilometres west of Port Kembla and incorporates the former BHP Billiton Delta coal mine and the adjoining NRE Avondale proposal.

It is the second mine in the region operated by Gujarat NRE Coke Limited, the largest independent producer of metallurgical coke in India.

"This $65 million mine will produce hard coking coal, which is experiencing an increase in global demand," Mr Macdonald said.

"The Southern Coalfields is the only NSW source of hard coking coal, so this area is set to reap the social and economic benefits of being home to a booming industry.

"Importantly, this particular variety of coal is also vital to Port Kembla’s steel industry.

"The export of our State’s high quality coal is forecast to continue to grow, and the Iemma Government is working with industry to ensure global demand can be met.

"This mine will provide a valuable contribution to the Illawarra where around 7,500 people are already employed in the coal and related industries.

"This area has a long proud history of coal mining, which dates back more than a century.

"I am pleased that international investment will ensure the continuation of this important industry for decades to come."

Mining operations are due to begin at Wongawilli in April 2009, following more than a year of development.

When it reaches full production, Wongawilli will produce up to 2.5 million tonnes annually of hard coking coal for export and has a life expectancy of 30 years.

Coal industry facts:

• The total value of NSW coal exports in 2006-07 was around $6.2 billion
• The value of coal exports from the Southern Coalfield in 2006-07 was estimated at about $700 million
• Coal is the single largest export from NSW
• Approximately 70 per cent of NSW coal is exported to 26 countries.