Solid Energy's predicament because of slumped global coal
prices reflects Bathurst Resources' dilemma.
Bathurst has spent more than $300 million in five years to
start up a coking coal export mine next to Stockton on the
Denniston Plateau above Westport, but the price plunge has
forced postponement until prices recover.
While eking out some cashflow from three existing South
Island coal mines, Bathurst has purchased for domestic
supply, which is set to increase. Bathurst successfully
sought $8.03 million from institutional investors in April,
and is seeking a further $2.7 million in a rights issues to
With Solid Energy's announcement yesterday about the almost
200 Stockton job losses, the Coal Action Network Aotearoa
(Cana) released a statement saying the latest Solid Energy
layoffs made it clear communities ''cannot rely on a boom and
bust industry for their job security'', member Jeanette
''Coal prices are not going up again any time soon, renewable
energy is getting cheaper all the time, and climate change
means that most of the coal currently available to mine can
never be burned anyway,'' Ms Fitzsimons said.
She said the latest redundancies were all part of a ''perfect
storm'', which former Solid Energy chief executive Don Elder
talked about, before he resigned.
Cana released its own report last month ''Jobs After Coal - a
Just Transition for coal mining communities'', co-authored by
Ms Fitzsimons, which looks at preparing West Coast
communities to transition from coal mining to other