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.
A dose of reality emerged last week when the announcement was made by Solid Energy that its Spring Creek mine, on the West Coast, would be put into a state of care and maintenance. The not-unexpected decision included laying off more than 220 Greymouth workers and will directly affect the livelihoods of about 130 contracting staff who rely on mine work for their jobs.
Solid Energy's balance sheet is debt heavy and the coal producer would have needed a large capital injection from the taxpayer to keep it operating as it was before the restructuring announcement made on Monday.
The Government should have bailed-out Solid Energy to keep miners at work at its unprofitable underground Spring Creek coal mine on the West Coast, environmental groups opposed to coal mining say.
Prime Minister John Key has denied Solid Energy is slashing jobs to tidy up its books ahead of a partial sale of the state-owned mining company.
Problem-plagued Solid Energy appears even further away from any partial sell-off by the Government after write-down and impairments charges of $140 million against assets prompted a $40 million after-tax loss for its year's trading to June.
Solid Energy's pilot briquetting plant south of Mataura is well on track to be completed by the middle of the year.
Record coal production and an after-tax profit increase of more than 50% by state-owned enterprise Solid Energy were overshadowed by expectations of a second-half trading downturn because of weakening international coal prices.
German investors have continued adding to their South Island farm portfolio, acquiring a 227ha property at Gore for $3.37 million.
Solid Energy's New Vale Mine, in Eastern Southland, is now using a new 63-tonne capacity truck and trailer that is the largest road vehicle in the country.
Solid Energy has made a deal with the Gore District Council to help pay for a study of the impact of large-scale lignite developments in Eastern Southland.
Delegates attending the influential Institute of Mining and Metallurgy conference in Queenstown were upbeat about New Zealand's prospects. Business reporter Simon Hartley wraps up the conference.
Coal miner Solid Energy - one of four state-owned enterprise energy companies National wants to partially float on the stock exchange - will deliver a total $50 million in dividends to the Government this year.
Thirty-one Solid Energy staff and contractors at the Stockton Mine on the West Coast tested positive for illegal drugs last month, it was revealed today.
A mining CEO has been accused of trying to drive down the value of Pike River mine by criticising its operation at the Royal Commission of Inquiry.
Black gold or an environmental disaster? Helena de Reus investigates plans to turn lignite from Southern mines into high-energy briquettes.
