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

 


Solid Energy plans production and job reductions at Stockton

Solid Energy plans production and job reductions at West Coast export mine

Solid Energy has today told Stockton Alliance staff that it plans to reduce production at the West Coast export mine by a quarter, from 1.9 million tonnes per annum (Mtpa) to 1.4 Mtpa in the next financial year, and that it is proposing to reduce jobs at the mine, in response to continuing low international coal prices.

Solid Energy Chief Executive, Dan Clifford said that the changes proposed were a necessary response to the depressed export market which was expected to remain for quite some time. “On current pricing projections, we have to minimise our losses by reducing costs so that we can keep the mine operating.

“We feel for the staff and their families, and for the wider Westport community, who will be affected by this, but by reducing activity we believe we can keep the operation viable with the continued benefits for the community.”

If the proposal outlined to staff today is implemented, 137 people from the total Stockton workforce of 521 would be made redundant (35 management, technical, support and administration jobs and 102 mining jobs). The company would stop non-essential development work, mine from lower cost-to-produce pits to meet long-term export customer contracts and carry out most mining work during the day to reduce the impact of weather - snow, rain and fog - on the operation. A number of other productivity improvements are either proposed or underway, including changes to rosters and training to increase the proportion of employees who can do a range of jobs at the operation.

Dan Clifford says, “While Solid Energy’s domestic business has been stabilised, the export business has continued to see falling prices from the 2011 highs of US$330/tonne. Even more recently the price has continued to decline with the quarterly benchmark price for hard coking coal falling from US$143/tonne for the January to March quarter, to US$120/tonne for the current quarter while the spot price has been sitting at about US$113/tonne for the last two months.

“While we are planning to continue with reduced production and reduced staffing levels for the next two to three years, we will still be able to meet our long-term customer contracts while retaining our options to respond to changes in the market.”

About 120 contractors currently work at the mine in either specialist roles or carrying out part time work. In addition, Solid Energy plans to bring as much of that work in-house as possible, or reduce the scope of contracts which will reduce contractor jobs by about 50.

Solid Energy is proposing a two-week consultation period with Stockton employees, followed by confirmation of the structure and a selection process for contested and vacant roles with the aim of implementing the new rosters by the end of July.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news