Friday, July 24, 2009

Xstrata To Restart Queensland Coal Mine

A central Queensland coal mine which closed last year will reopen.

Xstrata closed off the Oaky number one mine north-east of Emerald late last year, blaming a slump in demand for coking coal in China.

But the company says increased sales to China will allow operations at the mine to restart next month.

Construction, Forestry, Mining and Energy Union (CFMEU) spokesman Jim Vallerie has questioned why the company closed the mine in the first place.

"We believe the original closure was done in a very unjust manner towards all the employees who were working there," he said.

"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.

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

Premier Anna Bligh says the reopening of the mine shows confidence has returned to the industry.

She says she hopes other companies follow Xstrata's lead.

"It's good news for those workers and their families, but it's I think a sign of confidence," she said.

"I hope that confidence inspires other parts of industry and other parts of the market to come back in and to invest in Queensland."

Source: ABC

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