Premier Coal, one of Western Australia’s two remaining coal mines, will slash production and cut up to 100 jobs due to waning demand for coal-fired power.
The Chinese-owned company, which employs approximately 500 people, confirmed that the cuts are expected to initially target labour-hire and contractor positions, with management beginning consultations this week, ABC News reported.
“The proposed reduction in operations will result in a downsizing of the workforce over coming weeks,” the company said in a statement.
The mine is a primary supplier to Synergy’s Muja Power Station, which is slated for retirement as part of the WA government’s plan to exit coal-fired generation by 2030.
A spokesperson for the state government stated that the restructure was a commercial decision resulting from reduced customer demand.
While the government assured the public that energy supplies remain secure, they acknowledged the difficulty for the local workforce and promised support through redeployment pathways.
The Mining and Energy Union (MEU) has described the move as a serious hit to the local community, warning that the energy transition is taking effect sooner than many expected.
MEU WA District Secretary Greg Busson said workers who had been promised an orderly transition now feel the brunt of commercial reality.
“Workers in coal and power have been told for years there would be a planned and orderly transition,” Busson said.
“What we are seeing now is that transition starting to bite sooner than expected, and communities like Collie are being hit with the consequences.”
The union welcomed the state government’s commitment to support workers but said federal and state governments should accelerate the delivery of new industrial projects in the region.
Busson noted that while Collie is often cited as a model for transition, there has been a lack of outcomes on the ground, particularly from a federal perspective.
“Collie is often held up as an example of transition being done well, but especially from a federal perspective we haven’t seen enough delivered on the ground,” Busson said.
“There have been plenty of meetings. Now workers need to see outcomes.”
The job cuts have placed renewed focus on the Collie Basin consolidation taskforce.
The union is demanding urgent action to mitigate the impact of the downsizing, insisting that the transition must result in real jobs, not just promises and plans.