Illawarra employees at the Tahmoor coal mine have reason to feel more secure about their futures after the mine's owner said it had reached an agreement with its bank to pause its debt obligations while refinancing is arranged.
The GFG Alliance's future had been in some doubt after Greensill, the Australian hedge fund which backed much of its operation, collapsed in March.
But GFG Alliance, owned by British billionaire Sanjeev Gupta, on Wednesday said arrangements had been reached to secure the future of the Australian operations.
"GFG Alliance and Credit Suisse Asset Management (CSAM) have agreed a formal standstill agreement with regard to LIBERTY Primary Metals Australia (LPMA), which includes the integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor," a GFG spokeswoman said.
"The six-week standstill agreement will enable GFG Alliance to complete full refinancing of LPMA, expected to complete within this time frame.
"GFG Alliance and CSAM continue to work hard towards resolving GFG Alliance's remaining exposure with CSAM-Funds following the collapse of Greensill Capital."
The relationship between Greensill and GFG Alliance has since come under further scrutiny in the UK.
The company said "Sanjeev Gupta and GFG Alliance's Restructuring and Transformation Committee continue to make good progress on restructuring and refinancing of the group with all creditors".
Two months ago the mine faced the threat of liquidation as Credit Suisse took action to recoup it lendings, and a wind-up action was threatened which could have closed the mine.
GFG Alliance employs about 340 people at its mine, which it operates under subsidiary SIMEC.
In April the Independent Planning Commission approved the mine's expansion plans for the next ten years.
We depend on subscription revenue to support our journalism. If you are able, please subscribe here. If you are already a subscriber, thank you for your support.