The company, which is cutting staff in response to soft coal prices, is now attempting focus on optimising production, newly appointed chairman Mark Ford said in the company’s annual report.

“I take over as chairman of the company at a very challenging and difficult time and I will be working closely with the board and management to minimise the impact of the market on the business and to ensure we can come through this downturn in good shape.

“Inevitably, these measures have also included proposals for restructuring the organisation that will result in job losses across the company.

“I acknowledge the impact that this will have on a number of people, their families and local communities. We will do all we can to help affected employees find alternative employment, working with companies involved in the Christchurch rebuild and exploring opportunities here and in Australia in other similar or related industries.”

Citing an “extreme downturn” and “difficult market conditions”, the New Zealand miner proposed cutting its total workforce to 1360, compared with 1800 at the beginning of the year.

Solid said it expected a revenue shortfall of more than $NZ200 million in the financial year.

Corporate, support services and development staff will be reduced by 50% from 313 to 150 jobs, while Spring Creek and Huntly East are planned to lose hundreds of mining and contractor positions.

In July 2012, Solid Energy completed the purchase from the receivers of the ill-fated Pike River operation, where 29 miners were lost in November 2011, chief executive Don Elder said.

“The Pike River resource has a high mining cost and low market value on a standalone basis, but has potential future value within our overall portfolio of West Coast export coking coals,” he said.

Solid Energy is managing the business actively to minimise the impacts of current markets and to maintain its performance of the past year across most areas of its business, Elder said.

“Our focus is generating and preserving cash, and implementing the major restructuring changes begun during the previous year, both to deliver our refocused business strategy effectively and efficiently, and to manage through this difficult period while preserving core capability and future business options,” he said.