The future of Illawarra Coal's base at Wollongong's Innovation Campus is up in the air as parent company BHP Billiton spins off the small miner into a new company called South32.
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Under a demerger proposal being considered by shareholders, Illawarra Coal and several of BHP Billiton's smaller subsidiaries will form a new company called South32, to be listed on the stock exchanges of London, Sydney and Johannesburg.
The demerger could significantly change the company's workforce and its base in Wollongong, as Illawarra Coal's offices become part of South32's new headquarters in Perth.
Since 2011, Illawarra Coal has been one of the anchor tenants in the University of Wollongong's Innovation Campus, where it employs about 120 people and has naming rights on the top floor of the Enterprise 1 building.
BHP Billiton has signed a provisional lease for a building in Perth's CBD for South32's headquarters.
The company has assured shareholders that while setting up the new corporate centre may cost $60 million a year, this will be exceeded by efficiencies generated by the new streamlined structure.
It promises a "lean operating model designed to further reduce costs and increase productivity", with support functions based in Perth.
This has raised concerns about Illawarra Coal's presence in Wollongong, and a BHP Billiton spokeswoman on Wednesday could not be certain the Innovation Campus base would be maintained.
"We have informed employees about the new structure and any possible changes to administration and support roles," she said.
"Minimal changes are expected for operational employees as a result of the demerger.
"There will be changes to functional roles as South32 sets up its headquarters, global services centre and marketing hub.
"In the meantime, all our assets will continue to operate normally and retain their focus on working safely and productively."
Questions have also been raised about how exposed Illawarra Coal would be to currency and price fluctuations once released from the Billiton behemoth.
Company information shows Illawarra Coal's underlying earnings at $US20 million, and says a $US1 fall in the metallurgical coal price would bring a $US6 million hit to profitability.
The International Coal News website on Wednesday crunched the numbers and showed that a $US4 slide in coal prices would put paid to the profits.
Illawarra Coal can rely on its long-term supply agreement with BlueScope Steel, which lasts until 2032.
Shareholder approval for the demerger will be sought at meetings in Perth and London on May 6.
