Rio Tinto has now sold one operating mine Bengalla and one approved mine Mount Pleasant and its two remaining mines in the region Hunter Valley Operations and Mount Thorley Warkworth are on the market.

Last week we reported the Mount Pleasant mine had been sold to a company with Indonesian connections. 

In today’s paper we have a story concerning Yancoal Mining Services a division of the Chinese mining giant Yancoal.

Yancoal like all other mining companies is faced with the harsh economic realities of mining in Australia in 2016 and they are looking at cutting operating costs. The cost cutting according to the union involved means lower entitlements for their members.

The fastest and easiest way to cut costs is to cut employee numbers and wages. Every business knows this and when things get tight they follow that equation.

So do we accept lower wages and entitlements to maintain jobs and a local industry?

Or do we say no especially if we can expect more low costs overseas producers buying local mines.

The boom times are gone but their legacy of inflated wages lingers and is hurting the industry.

Perhaps the solution lies in a sensible compromise of reasonable wages but most importantly world leading mine safety standards.

As a community will also want to ensure the mining companies  meet strict environmental standards both during mining and in the post mining rehabilitation era.