In an email sent to all staff on Monday afternoon, mine management informed employees that both mines owned by Wollongong Resources will close, this also includes the Wongawilli Mine, which had planned to re-open.

The email states the decision to close was made by the mine's owners, Jindal Steel and Power, due to "ongoing regulatory risk and lack of support".

The closure comes after another lay off of workers earlier this year, following five underground gas fires in less than two years.

Almost all workers at Russell Vale had been stood down following the most recent fire in January.

The Resources Regulator issued a prohibition notice, stopping the mining of coal due to safety concerns.

In the email to workers, management said the company intended to "honour all our financial commitments including employee entitlements".

A meeting for employees will be held tomorrow.