THE state is considering importing coal as coal mining in Collie becomes more expensive.
This is the conclusion of a report commissioned by the state government.
The long-term prospects of WA's mining industry and its survival are being questioned.
The issue is not a shortage of coal but the financial viability of mining the state's coal reserves as mining companies are forced to sell poor quality cole at increasing losses, according to the review team which was led by businessman Paul Breslin.
Indian-owned Griffin Coal and Chinese-controlled Premier dominate WA's mining industry.
Both companies continue to be beset by problems, with Griffin in particular having ongoing economic and operational setbacks.
These problems have had a domino effect on unemployment in Collie which is an issue in the town as both mines are among the biggest employers in the South West.
Between them they employ hundreds of workers directly and thereby fuel much of Collie's economy.
The recent rumours of staff layoffs have exacerbated tensions between mine workers and mine management.
Should the import of coal from Indonesia be necessary, according to a Griffin spokesperson the price of coal would be between $100 and $120 per tonne more than double the local price.
"It would appear that the consultant's review of coal supports the government's review of coal pricing and supply contracts," CFMEU district secretary Gary Wood said.
"Rather than import coal, the government would be far better positioned to review the current pricing and supply arrangements.
"It's ludicrous to suggest the importation of coal to the coalfields as the state becomes more and more dependent on coal supply. All parties need to bed down a long-term, secure supply from the Collie coalfields."
