AAP reported that Mining will cease at Xstrata Coal's United Collieries mine in New South Wales by 2010, potentially resulting in 174 full time job losses.

As per report, the Hunter Valley mine, 15 kilometers west of Singleton is expected to be placed on care and maintenance in March 2010 after all economically recoverable underground reserves are exhausted.

The mine, which is 95% owned by the Swiss mining giant's wholly owned subsidiary Ableshore Private Limited also employs about 46 contractors.

Xstrata Coal said that the first round of redundancies would start in September, affecting about 40 mine employees, 8 managerial and administrative staff and 20 contractors. But Mr James Rickards communications manager said that the company hoped to redeploy staff to its 14 or so other coal mines in the Hunter Valley.

Mr Rickard said that "It's going to depend on the opportunities that may be available in the surrounding areas. The intention is, where possible and where opportunities arise, to try ensure that candidacy is available for those affected employees. But we just want to be up-front with our people now to let them know to start planning for March 2010. It is obviously a way away and we obviously can't predict what the market is going to do in the current environment, but if there are any opportunities, we'd be letting them know straight away. And we'd be working with the local employment services in the Hunter Valley region to try and assist them as much as we can."

He said that some staff may be picked up by other companies operating coal mines in the Hunter Valley.

Xstrata Coal said that it would start a pre-feasibility study looking into future potential mining operations in the area.

(Sourced from AAP)