12.40pm: Opposition spokesman for the Illawarra Ryan Park has repeated calls for the state government to discuss employment challenges in the region, after Wollongong Coal announced 80 job losses on Tuesday.

"Today marks a very sad day for Wollongong Coal employees and their families. I will continue to work with Wollongong Coal to ensure employees’ best interests are kept a priority during this difficult time," Mr Park said.

The Labor MP said he was "determined to do all I can to prevent further job losses in our region".

"I have written to the Minister for Planning today [Tuesday] urgently seeking a time frame about when a decision will be made one way or another about the current expansion plans Wollongong Coal has submitted to the government," he said.

"I am very concerned, just last week we as a community were advised of the 500 job losses at BlueScope Steel and now a further 80 from Wollongong Coal. 

"I am very aware of the pressure this will place on our local economy and I am urging the Government to start showing some real action."

12.10pm: Parliamentary Secretary for the Illawarra and South Coast:Gareth Ward MP said he was "concerned'' about the reduction of workforce at Wollongong Coal.

He said an extension to the project was currently being assessed and Wollongong Coal was in the process of providing further expert information to the Department about potential water impacts.

"The Government is committed to ensuring that all key issues, including potential impacts on Sydney’s and Wollongong’s water supplies, are properly considered,'' Mr Ward said.

"There is no room to cut corners when it comes to these important environmental factors.

"Nonetheless, I am advised that the Department will work to finalise its assessment of the project as quickly as possible, once Wollongong Coal provides its response to the Commission’s merit review.

"I encourage Wollongong Coal to provide the further expert information as soon as possible.''

11am: Wollongong Coal has announced mining operations at the Russell Vale Colliery will be suspended, resulting in the loss of 80 jobs.

The troubled company made the announcement to workers this morning.

‘‘This decision is not taken lightly and we have continually attempted to avoid this unfortunate situation by undertaking a series of workforce restructuring,’’ Wollongong Coal chief executive Milind Oza said.

‘‘With the extraction of longwall 6 at the Russell Vale Colliery complete and the company experiencing significant losses, ongoing operations at the colliery are simply not sustainable at this point in time,’’ Mr Oza said.

The changes will affect operators, electricians, fitters, deputies and other staff.

A small team will be retained to undertake care and maintenance activities.

Mr Oza pointed to the ongoing delays in the approval of the company’s Underground Expansion Project (UEP) as a major obstacle to the mine moving forward.

Wollongong Coal expects the UEP will be referred back to the Planning Assessment Commission for determination later this year.

‘‘While this is a very sad day, we are absolutely committed to the region for the long-term, with the company having already invested over $400 million over the past two years,’’ Mr Oza said.

‘‘We will be doing absolutely everything we can to ensure this operation which has been in existence since 1887 will be able to provide ongoing employment and support for the local community.’’

Mr Oza said Wollongong Coal would continue to seek approval for the UEP at the Russell Vale Colliery, which will allow us to recommence extraction of high-quality coking coal which is in high demand by the global steel market.

‘‘This approval will pave the way to the beginning of a continued long term future in the region and we will continue to work closely with the NSW Government to ensure this can happen,” Mr Oza said.

Wollongong Coal is currently discussing the changes with employees, the Construction, Forestry, Mining and Energy Union and Association of Professional Engineers, Scientists & Managers, Australia.