The future of Illawarra Coal's headquarters in Wollongong is looking bleak, with new reports backing earlier concerns the office would close under the control of BHP Billiton's spin-off company, South32.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Key analysts and investors in the new company, to be created from a demerger proposal, were reportedly told South32 had already decided to close the Wollongong office and cut 65 jobs.
A further 60 positions would be moved to Illawarra Coal's mine sites or the new South32 head office in Perth, according to a coal industry publication.
A BHP Billiton spokeswoman did not respond directly to questions about the office closure, but said Illawarra Coal would "continue to require facilities for local employees at the University of Wollongong's Innovation Campus".
She said some support services would be provided from South32's Perth offices, but said "minimal changes are expected for operational employees as a result of the demerger".
Doubts about the coal miner's presence in Wollongong were first flagged by the Mercury in March.
This week, about 50 analysts and investors were taken on a four-day roadshow of the soon-to-be-created company's Australian assets and spent the first day of the trip looking at Illawarra Coal.
According to a report on the International Coal News website, they were told of the "bombshell" Wollongong closure in a UBS report.
"South32 have already indicated that it would close the Wollongong office, seeing the reduction of about 65 positions and the relocation of about a further 60 positions to the mine site or Perth as part of the regional operating model," the UBS report said.
The UBS report also revealed that South32 wanted to reduce waste disposal costs for Dendrobium and achieve higher volumes of coal production at Appin and West Cliff mines, the International Coal News website said.
Despite the reports, a University of Wollongong spokeswoman said the institution was under the impression Illawarra Coal had no plans to close its Innovation Campus office, where it has had naming rights over the top floor of the Enterprise 1 building since 2011.
"UOW has a long-standing relationship with Illawarra Coal and has been in regular contact with their management team as they implement the company's planned demerger," she said.
Shareholders vote on the demerger on Wednesday, with the company hoping to list on the London, Sydney and Johannesburg stock exchanges by month's end.
