Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Spring Creek Mine into care and maintenance

Solid Energy confirms it will put Spring Creek Mine into care and maintenance

Solid Energy has confirmed to staff its plan to place Spring Creek Mine into care and maintenance, part of a wider reorganisation in response to extremely weak global coal markets.

Dr Don Elder, Solid Energy’s Chief Executive Officer says the company is very aware of the impact its decision will have on the West Coast economy but given the current outlook for international semi-soft coking coal prices, the Spring Creek operation remains uneconomic.

The decision means redundancy for about 220 staff at Spring Creek Mine and the nearby Rocky Creek coal handling and processing plant. The company will offer redundant staff the opportunity to apply for positions in a team of 16 which will maintain the mine and team of four at Rocky Creek which will continue to operate processing coal from the company’s Strongman mining licence area.

Solid Energy has committed to work with the community to minimise the impact of winding down the Spring Creek operation and to help staff find new employment. It will retain dedicated capability in Greymouth for 12 months to explore a number of opportunities including the Christchurch rebuild. About 150 people attended a meeting held by representatives of the Stronger Christchurch Infrastructure Rebuild Team (SCIRT) in Greymouth on 28 September to outline the opportunities they had available. SCIRT has received about 100 applications of interest to date. Solid Energy has also retained Stellar Recruitment to assist staff interested in mining opportunities in Australia.

Solid Energy believes the mine still has potential if or when international markets strengthen for steel-grade coal, particularly as a blend-stock for some production from other mines, or as a speciality product. For that reason the company has decided to place the mine into care and maintenance, which preserves future options, rather than closure, which would make it nearly impossible to recover flooded infrastructure and reopen the mine in future.
Notes:
1. Of the 254 Spring Creek employees referred to in Solid Energy’s announcement of 24 September 2012, about 20 people have already left the company and a few may apply for roles in other parts of the business.
2. Care and maintenance is a transitional state, a time when a mine has stopped production for technical, environmental, financial or other reasons but the owner has not yet decided if or when mine operations will resume, or if it will be sold, or closed and abandoned. During care and maintenance, a smaller workforce ensures the mine presents no danger to human life or the environment and that any remaining capital equipment, including developed roadways, is maintained in a state which does not excessively constrain future options.
3. On 8 October Solid Energy confirmed plans to reduce corporate, support services and development jobs from 313 to 151. On 12 October, it confirmed the selection of the Huntly East Mine workforce reducing from 234 positions to 171 and the moving to a five day a week operation.
ENDS



© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news