INTERNATIONAL COAL NEWS

NZ coal miners to march on Parliament

COAL miners representing Solid Energy's Spring Creek and Huntly East underground mines will march...

Justin Niessner

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Miners in New Zealand’s Engineering, Printing and Manufacturing Union said 120 jobs at Huntly East, 70 positions at Spring Creek and 60 contract jobs associated with Huntly’s ventilation upgrade hung in the balance as the state-owned coal miner mulled sweeping cutbacks.

Solid chairman John Palmer said the Spring Creek and Huntly operations had struggled to be profitable as costs had escalated and export coal prices had weakened substantially.

The EPMU says it is travelling to Wellington because it wants the government to understand the community-wide impact of the potential closures.

“The joint plan shows Spring Creek is viable but the government will need to come to the party by providing some financial support to get the mine through the next year or two,” Spring Creek miner and union delegate Trevor Bolderson said.

“We’re hoping to make them see that the economic and human cost of closing Spring Creek would be unconscionable.”

Huntly miner Brian Lynch echoed the concern.

“Solid Energy’s proposal to cancel the Huntly East ventilation project is a very risky and short-term cost saving strategy that could force the mine to stop production within two years,” he said.

EPMU miners say scrapping the Huntly ventilation upgrade was “gambling with the future of the mine” as it would prevent expansion possibilities and access to further coal deposits.

A plan said to be drafted between management and workers will reportedly ask the government for $NZ36 million to keep the two mines going until they regain lost profitability.

NZ City said the mayor of Spring Creek’s Grey district would join the miners in their march, quoting him on the view that $36 million was not too much money to invest in a mine with a $1 billion turnover which Solid had already invested $100 million in developing.

“You don’t walk away from a half-finished house,” he said.

Last month, Solid reported a $40.2 million net loss for 2011-12, with a 16% increase in earnings offset by asset impairments and other write-downs totalling $140 million.

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