The company said the cuts would be made to help in “refocusing the company on its core coal mining business, and divests non-core assets and activities.”
Solid Energy said the cuts would be made from “roles based in or reporting into its Christchurch office”, and if the proposal went ahead it would see jobs cut from 234 to 129 roles, resulting in a net loss of 105 roles (52 in Christchurch and 53 at regional sites).
Solid Energy chairman Mark Ford said the company’s funding partners and treasury were undertaking a wide-ranging review of all parts of the business with a view to confirming the best strategy and structure for the company’s long-term future which would see the company focus on its core coal mining capability.
The company expects to confirm the company’s business model and strategy by the end of June.
“Staff in the company, particularly those who work or report into Christchurch, have had many months of uncertainty and we know that continues to be really difficult for them. We’ve made the decision to move on this change proposal now so that we can start to give these staff some clarity about their future,” Ford said in a statement Wednesday.
“The proposal for a new corporate office structure is designed to support a refocused coal mining business which is appropriate for a coal company with our turnover, is consistent with others of a similar size in our sector and which is affordable for the business.
“We have already cut some of our activities and operations and are divesting other parts of the business, as well as surplus assets. This includes the Nature’s Flame wood pellet business which will go on the market shortly.
State-owned Solid Energy has debts of around $NZ400 million and has made a considerable number of jobs cuts over the last twelve months.
Its Stockton mine has lost more than 250 workers since the company hit dire straits last year, 225 jobs were lost at Spring Creek and another 63 jobs went at Huntly East, according to the NZ Herald.
“While the underground coal gasification and lignite conversion still have potential, Solid Energy is no longer in a position to be the lead sponsor of major capital projects and we are looking to transition and divest these projects to entities which have the capital, experience and appetite to progress them. The company’s financial situation also means that it is unlikely that we will be able to undertake any significant new coal development projects,” Ford said.
The company is now consulting on the proposal with potentially affected staff and expects to confirm the final structure for corporate staff based in and reporting to the Christchurch office by late May.
Solid Energy said that this process would not affect its service or delivery to customers.
