Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Sale of mines best outcome

Hon Bill English
Minister of Finance
Hon Todd McClay

Minister for State Owned Enterprises

31 October 2016

Sale of mines best outcome

The sale of Solid Energy’s mines provides the best outcome for employees, creditors and communities, Finance Minister Bill English and State Owned Enterprises Minister Todd McClay say.

Solid Energy announced today that it had reached agreement on the sale of the Stockton, Strongman and Liverpool mines on the West Coast, the Rotowaro and Maramarua mines in the Waikato and the New Vale and Ohai coal mines in Southland.

Stockton, Rotowaro and Maramarua have been bought by Phoenix Coal Limited, a joint venture between Bathurst Resources and Talley’s Group, New Vale and Ohai have been bought by Greenbriar which is owned by the Palmer MH Group and Strongman and Liverpool have been purchased by Birchfield Coal Mines Limited.

“The sale of the mines as going concerns is a very positive development,” Mr English says.

“It means they will continue to provide jobs and contribute to regional economies. That is not something we could be sure of 18 months ago.”

Falling international coal prices and high debts forced Solid Energy into voluntary administration in August 2015. Shortly afterwards Solid Energy’s major creditors effectively took control of the company when arrangements were entered into to facilitate the orderly sale of its assets. Those arrangements provided for payment in full to employees and trade creditors.

Mr McClay says Solid Energy’s remaining creditors – primarily banks – are expected to receive about half of what is owed to them.

“I want to thank Solid Energy’s board and management for the work and effort they have put into achieving the best possible outcome for the company’s creditors and staff under sometimes difficult and trying circumstances.”

A condition of two of the sales was that they were confidential. Bathurst is announcing details of the Phoenix Coal Ltd purchase on Wednesday.

As part of the sales process, the Crown has agreed to take over responsibility for long term rehabilitation obligations associated with acid mine drainage from the Stockton plateau. Current estimates are that this will cost $36 million on top of earlier commitments.

The Crown had previously extended its indemnity for pre-1987 historical rehabilitation obligations to cover the period between 1987 and 2014 at a cost of $103 million.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Herd Immunity Isn’t A Valid Option, And What’s With Our Reluctance To Wear Masks?

Herd immunity has recently bounced back into the headlines as a tool for managing Covid-19, and as a supposed alternative to lockdowns. In the US, a group of scientists was recently brought together in the town of Great Barrington, Massachusetts by a think tank funded by the Koch brothers. The assembled scientists signed the so called Barrington Declaration, which promotes herd immunity as a rational means of re-opening US public schools and the economy at large... More>>


Gordon Campbell: On National Being Shafted By Its Own Creation

As it licks its wounds, let’s hope the National Party can still find time to look back with some pride at what it has achieved in Epsom. The Act Party’s nationwide success on Saturday night has been a tribute to National’s foresight, and to its ... More>>


Green Party: 'Fruitful Discussions ... Further Discussions To Have'

The Green Party says there is a negotiation going on with the Labour Party, but there are more discussions to be had. More>>


Border: No Changes To Border Exemptions After Fishing Crew Test Covid-19 Positive

The cases were detected after routine day three testing but the immigration minister and air commodore agree there's no need to change border exemptions. More>>

PSA: Labour-Led Government Has Mandate For Transformation, Equality And Transparency

The Public Service Association welcomes the progressive electoral landslide New Zealand voters delivered on Saturday, and the union says its members look forward to implementing policies that reduce poverty and inequality, support affordable housing ... More>>


Stats NZ: New Report Shows Significant Changes To New Zealand’s Climate

Climate change is already happening in New Zealand and could have a profound impact on future generations of New Zealanders, a new report from the Ministry for the Environment and Stats NZ says. Our atmosphere and climate 2020 , released today, includes analysis ... More>>


Judith Collins: Obese People Must Take Responsibility For 'personal Choices'

National Party leader Judith Collins has described obesity as a weakness and says people should not 'blame systems for personal choices'. More>>

Māori Party: Poll Reveals Tamihere On Cusp Of Historic Māori Movement Election Victory

John Tamihere’s election campaign is on the rise and on track to return the Māori Party to parliament, a new Māori TV poll has revealed. The poll released on 11 October during the seventh and final Māori TV Maori Electoral campaign coverage has Tamihere ... More>>

Gordon Campbell: On Four-Year Terms Of Parliament, And On How The US Courts Are Dismantling Democracy

Last week, the issue of four-year parliamentary terms surfaced again. Infuriatingly, it is being discussed purely in terms of its convenience for political parties. They’d get so much more time to enact their policies, free of scrutiny or sanction by voters ... More>>





InfoPages News Channels