Wollongong Coal has announced it will re-open its Wongawilli mine, creating up to 110 jobs.
But the company has engaged contractor Delta SBD to run the operation, going against union and politician demands to re-employ recently laid-off workers.
Shellharbour MP Anna Watson said the company risked losing her support with its decision.
It follows recent approval for the company’s time extension modification from the New South Wales Planning Assessment Commission.
“Those retrenched workers stood by the company at a very difficult financial time and they should be the first workers approached to get a job back as Wollongong Coal re-starts operations,” Ms Watson said.
“There is no excuse for Wollongong Coal not to offer those coal workers a first preference at these new jobs.
“I remain concerned that Wollongong Coal appears to wish to employ a new contract-based workforce at Wongawilli Colliery.”
In a statement to the Australian Securities Exchange, Wollongong Coal said announced the contractor would provide technical expertise, personnel and equipment services at the mine, and manage day-to-day operations.
“The arrangements with Delta are for an interim period of two years as Wollongong Coal focuses on future approvals and longer-term management and workplace arrangements at Wongawilli,” the statement read.
“Similar arrangements exist at numerous resource sector operations and will allow Wollongong Coal to benefit from Delta’s expertise.”
The company said the approval would allow mining activities approved in 2011 to continue for another five years.