 It was cheaper for VR to purchase coal from Newcastle, New South Wales, however a protracted miners dispute in 1909 threatened supplies and led to an even stronger commitment by the Murray Government to securing local supplies.With the Korumburra mines unable to meet Victorian Railways' demand for 1000 tons of coal a day, a promising seam on the Powlett River which had been tested in 1908 was rapidly developed as a mine site and the government opened the mine for commercial purposes in 1909.While the first shipments were taken by sea from Inverloch, a railway was rapidly constructed to service the new mine.