Three weeks ago Solid announced the cost saving plans, which included reducing Stockton’s output from 1.4 million tonnes per annum to 1Mtpa and cutting six jobs from the Spring Creek underground coal mine.

Solid said the lower tonnage and work levels were necessary to stem the losses while still allowing the company to “maintain relevance” in the international market.

“The company has now begun a process to select employees for the remaining jobs," Solid said.

“It is expected that this will be completed by the end of June.”

Overall the total cuts are expected to save Solid $NZ36 million ($A33.6 million) per year.

While state-owned Solid is losing money and has more than $300 million of debt, Solid acting chair Andy Coupe said good progress was being made in discussions between the company, its lenders and the Crown shareholder.

“Earlier this year the company initiated these discussions because we could see an issue coming to do with our ability to either refinance or repay debt as it falls due from September 2016,” Coupe said yesterday.

“We have agreed key objectives and important milestones have been achieved to stabilise the company. The details are being established and management has been keeping staff members informed of progress and we will make further announcements as details are established.”