Powercoal operates six underground mines in New South Wales - five in the Newcastle Coalfield and one in the Western Coalfield.
The Construction, Forestry, Mining and Energy union (CFMEU), with over 800 members represented in Powercoal’s 1200 strong workforce, remains opposed to the privatisation in principle. The CFMEU has, however, acknowledged that some of the mines face certain closure and significant restructure if they remain under state ownership.
Up to $350 million is believed necessary to keep the mines going and to develop the new Mandalong project and, potentially, expand export capability. The future of the Wyee mine appears to have been resolved after bord and pillar operations struck a major geological fault. The mine’s is facing almost certain closure in the near future.
“The government has categorically stated that the priority of expenditure does not include coal mines against hospitals, school and roads,” said Peter Murray, vice president of the CFMEU’s northern district branch.
“For the mines to be retained as a State owned corporation, the Government has indicated they will cease export coal production, would not develop new mines or infrastructure to improve its export ability or its market share.”
This was the message until Jeff Hunter, the Member of Parliament for Lake Macquarie, attended a consultation meeting the CFEMU held in September to brief members.
At that meeting Hunter indicated the possibility of necessary funding being available because of budget surplus and GST benefits flowing to the NSW government, which he said could be used to retain ownership of the Powercoal mines.
While Hunter’s ‘promise’ of ongoing funding is neither politically smart nor government endorsed, it fuelled the opposition of the CFMEU rank and file to the sale.
“Given your stated position it is imperative we develop the strategies of how that funding can be approved as a matter of urgency,” Murray wrote in a letter to the MP.
It is a simple issue really: either the NSW government is a coal miner, producing coal in the same competitive environment as everyone else, or it isn’t.
The message to Hunter? Find the money to ensure Powercoal’s survival, or butt out.
The earliest the sale process is likely to be completed is mid-2002.
