Solid Energy progresses West Coast mine site changes

26 May 2015

Solid Energy progresses West Coast mine site changes

After considering feedback from staff members at the Stockton and Spring Creek mine sites, Solid Energy has today told employees it will go ahead with the proposals outlined earlier in the month to change the sites’ work and staffing levels.

Chief Executive Dan Clifford says feedback from staff members resulted in some alterations to the initial plans. At Stockton, a change has been proposed to further improve efficiency. As a result, affected employees will have another week to comment on this proposed change.

Mr Clifford says the changes made in response to feedback from employees would not change the overall number of expected redundancies -- 113 at Stockton and six at the Spring Creek site.

As a result of the changes, from July Stockton’s staff complement will be 246 and coal output will reduce to approximately 1 million tonnes a year. The lower tonnage and work levels at the mine were necessary to stem 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. It is expected that this will be completed by the end of June.

Solid Energy’s (7 May) statement about these changes is here.

Progress made with wider company challenges

Solid Energy Board Acting Chair, Andy Coupe, says good progress is being made in discussions between the company, its lenders and 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,” Mr Coupe says. “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.”

ENDS

© Scoop Media