Xstrata which closed the Oaky coal mine last year due to slump in demand for coking coal in China will reopen the mine again.

Xstrata said that but the increased sales to China will allow operations at the mine to restart next month.

When asked why the company closed the mine in the first place, Mr Jim Vallerie a spokesman of Construction, Forestry, Mining and Energy Union said that "We believe the original closure was done in a very unjust manner towards all the employees who were working there. We would see that what they're doing now by re-employing some six months, if that, later, probably clouds the real reason behind why they were done.

He said that "It is always good to have people put back on but the people who had the loss will still feel that loss."

Premier Ms Anna Bligh also said that the reopening of the mine shows confidence has returned to the industry. She said that she hopes other companies follow Xstrata's lead.

Ms Bligh said that "It's good news for those workers and their families, but it's I think a sign of confidence. I hope that confidence inspires other parts of industry and other parts of the market to come back in and to invest in Queensland."

(Sourced from ABC online.com)