However, how long these depressed conditions last for is a question she can’t answer.

The foundations latest economic indicators for the Hunter region reveal what most of us already know - an oversupply of coal coupled with a high Australian dollar has led to job losses and cut backs as the big miners attempt to remain profitable.

“Exports through the Port of Newcastle continue to grow as mining investment translates into production volumes and the RBA’s outlook for our main trading partners remains robust.  However, downward pressure on commodity prices is expected to continue, raising the prospect of further mine closures and ongoing squeeze on margins for producers and suppliers to the industry,” the indicators state.

“The AUD has been slow to respond to a fall in commodity prices and continues to impact on local industries competing in global markets, particularly manufacturing and retail.”

Last month Brazilian miner, Vale announced the mothballing of their Integra complex leaving around 500 workers without a job.

Then on June 4, The Newcastle Herald reported that 50 contract staff at BHP’s Mt Arthur open-cut mine would be laid off.

The day before the news broke the company’s NSW Energy coal asset president Peter Sharpe told the Muswellbrook Chamber of Commerce that two months ago they embarked on an “internal transformation process aimed at returning our business to being one of the lowest cost suppliers of thermal coal in the world” and the process is “far from over”.

Not long after employees of Peabody’s Wambo Complex were informed of roster changes at both their open and underground mines.

Ms Williams said the region is experiencing a “hangover” after such a long period of unprecedented growth in the mining sector.

“The Hunter economy, which benefited from the resource-related investment boom and was largely sheltered for the Global Financial Crisis, is now feeling the effects of the post-boom slowdown to a greater extent than the rest of the state.”

“In figures to date dwelling approvals have slowed and rental and sale prices have dropped.  There has been a slowdown in overall employment and a kick up in unemployment rate.”

Although she said it must be remembered these rates were at historically low levels which could never have been sustained for a long period.

“It’s not all doom and gloom with many new opportunities on the horizon,” Ms Williams said.

Her research reveals the continued growth of Chinese demand for a range of products and services will be a key factor in the restructuring of the Australian economy.

The Upper Hunter region is well placed to continue to benefit from this, as a supplier of products that are skill and market-intensive (such as wine and horse breeding) as well as a range of agricultural products and tourism.

 A statistical snapshot

According to the predictions of the Bureau of Resources and Energy Economics (BREE) Black coal is an important energy export for Australia, with coal projected to account for almost three-quarters of the growth in exports over the period to 2034–35. 

The projected growth of 3.3 per cent a year is based on the expectation that global demand for coal will continue to increase over the projection period, particularly in emerging market economies in Asia, in line with growing demand for electricity and steel-making raw materials. 

Australia, with its abundant reserves of high-quality coal, is well positioned to make a substantial contribution to meeting this increased demand.

Production of black coal, which includes thermal and metallurgical coal, is projected to grow at 2.8 per cent a year to 18 676 petajoules (623 million tonnes) in 2034–35. 

Despite this growth, the share of black coal in total energy production is projected to decline from 69 per cent in 2008–09 to 66 per cent in 2034–35.