Ms Murphy said mining had been a part of the Illawarra community since the 1800s and the region’s peak business body would keep fighting to ensure its future.

The chamber believed the key issue was addressing red tape because delays had been major.

Ms Murphy said decisions needed to be timely and  balanced.

‘‘Red tape is stifling development and business viability,’’ she said.

‘‘Red tape has been a major negative impact on Wollongong Coal. The time delays in processing their planning approval, as well as the fact that decisions should be made on balance, considering the economic imperatives, is a major contributor to the job losses.

‘‘We should look at business investment decisions from the perspective of ‘what are the costs of not approving development applications’.’’

Ms Murphy said Tuesday’s announcement was very unfortunate.

‘‘It is a blow to the Illawarra community sadly,’’ she said.

‘‘We have empathy with people losing their job.’’

Ms Murphy spoke about coal mining’s overall economic impact in the Illawarra when she addressed the Planning Assessment Commission in February.

Presenting a report called Mining in the Illawarra: our history and the economic impact, she said the coal industry was a big spender worth $1.5billion to the region.

Mining added $3billion to the Illawarra economy and represented 14.4per cent of the gross regional product.

And there were 611 businesses in the region that directly serviced the mining industry.

‘‘There is a good economic case to support mining in the region,’’ Ms Murphy said.

‘‘I think now is the time to work collaboratively with all levels of government to ensure decisions are made in a timely manner and considering their economic importance. Especially given what what else is happening in the region [with the steelworks].’’