Solid Energy

The collapse of state-owned coal producer Solid Energy has been well documented in recent months.

Labour leader David Shearer is calling for fuller disclosure on Solid Energy's spending and management.

Any Government bail-out of financially stricken Solid Energy could cost far more than the $389 million of debt identified by Minister for State Owned Enterprises Tony Ryall.

Solid Energy's financial woes became public in August last year, when it flagged the likelihood of a $200 million slump in revenue.

Solid Energy's controversial plans to utilise billions of tonnes of Southland lignite appear to be at an end as the company fights for its financial survival.

Solid Energy is at a crisis point and a Government bail-out is almost inevitable, mine closures are possible and further job cuts likely in another restructuring to try to salvage the debt-ridden coal mining company.

In a shock announcement yesterday, the longtime chief executive of beleaguered state-owned enterprise Solid Energy, Don Elder, tendered his resignation, effective immediately.

Don Elder has resigned as chief executive of Solid Energy, effective immediately, the state-owned coal company said in a statement.

State-owned enterprise Solid Energy has finished a forgettable financial year, with its after-tax profit plunging 146% to a loss of $40 million and no repeat of last year's $30 million dividend.

About 105 Solid Energy staff will stay home today to wait anxiously for letters advising them whether they will lose their jobs.