Mine reopens for business
(Mercury, Wednesday, March 30, 2005)

THE historic Russell Vale Colliery will today celebrate its official reopening, 19 months after an internal company dispute forced it to shut down.

The new owner of the coalmine, Gujarat NRE, has been producing coal from the site since early this year, and has employed about 70 full-time and contract staff.

Gujarat NRE head of technical services Malcom Carson said it was an important occasion for the Indian-based company.

"It is the first acquisition of its kind for an Indian business and it has created a lot of interest over there," he said.

The opening will be presided over by Gujarat NRE Australia chairman Arun Jagatramka.

Mr. Carson predicted the mine would be fully operational by July and aimed to be producing one million tonnes per annum before the year was out.

He also said the colliery would be looking to hire more personnel.

"We envisage having in excess of 100 employees before too long," he said.

Mr. Carson said the launch would emphasise the company was committed to the venture.

"We're demonstrating to our workforce and the community we are for the long haul." he said.

An agreement with BHP Billiton was signed last December, allowing Gujarat to access the Bulli and Balgownie coal seams from Russell Vale and further north, via the BHP-controlled Cordeaux Colliery.

It is estimated that up to 34 million tonnes of high quality coal is still available at the site.

United Mineworkers Federation district secretary Bob Mitchell said Gujarat's operation was a terrific boost for the region's coal industry.

"Their bona fides are good and they're willing to invest in the site, so they don't appear to be fly-by-nighters," he said. "They place a great deal of emphasis on safety, which is important."

The company plans to mine the Balgowine seam using American technology abandoned at the Russell Vale mine in 2001 by US company Thin seam Mining.

This equipment - valued at $6 million - is designed to mine thin but high quality seams and is commonly used internationally.

Previous owners of the site, Bellpac, closed the mine in August 2004 at the cost of 35 jobs.