Russell Vale mine owner asking for increased output - while shut down

It wants an extension of the approved mine life by 18 months until March 2028 and an increase in coal production from 3.7 to 5.5 million tonnes.

This includes mining beyond its existing lease and into one owned by South32.

And despite significant concerns over the mine's solvency and competence, NSW planning authorities will progress its application.

This would increase the workforce to 360 full-time equivalent employees and contractors, Wollongong Resources (WRPL) says.

It appears the company is speaking hypothetically: more 200 workers were put out of a job after the miner told them it was closing the Russell Vale operation after another fire underground caused the regulator to act.

A scoping letter to the Department of Planning and Environment from WRPL's environment, community and sustainability manager Dianne Jolley says the miner will try and come to terms with South32 over accessing its lease area.

"WRPL is negotiating terms for access to this area of the mining lease," it states.

"If suitable terms cannot be arranged, WRPL would access the south-western panels through PC08 (consistent with current approvals) and would not mine the additional panels which extend into the separate mining lease."

South32 is being acquired by Queensland-based M Resources in a deal that has not been finalised.

Last month WRPL was urged to be open and honest about its plans after an email from company secretary Sanjay Sharma cast doubt on whether the mine was closed for good, or under review.

Wollongong Resources and Mr Sharma were contacted for comment for this story.

The Department of Planning, Housing and Infrastructure said it would progress the application as per usual.

"Wollongong Resources has a current modification application under assessment relating to the processing of Russell Vale coal at South32's Port Kembla coal processing facility," it says.

"Wollongong Resources has requested the department continue its assessment of this modification while it makes a decision on the future of its operations.

"Unless the application is withdrawn, the department will progress its assessment as usual."

In February, the fifth underground gas fire in two years was the final straw for the NSW Resources Regulator, which hit the entire mine with a prohibition notice.

This meant there could be no more mining until Wollongong Resources could demonstrate to the Regulator that it was able to mine safely.

Its production increase is progressing through the NSW Major Projects planning process, and includes some realignments of mining areas to access more coal, and some changes to infrastructure at the pit top.

"The changes in panel alignment and sizing and the additional panels will result in an increase in total resource extracted from 3.7 Mt to 5.5 Mt and extend the approved mine life by 18 months to 31 March 2028," the scoping letter says.

"There will be no change to maximum hourly truck movements however this maximum rate may be met more frequently due to the increased production rate."

Wollongong Resources has been able to make little income over recent years, largely a result of not having regulatory approval.

With little coal being sold, it has been reliant on Indian parent company the Jindal Steel and Power group to keep it afloat with bank guarantees.

Winning approval for greater output may make the colliery more attractive to sell, if this is Jindal's plan.