Construction Forestry Mining and Energy Union WA’s secretary of the mining and energy division, Gary Wood, is part of the committee of creditors but also keeps tabs on the day-to-day operations.
ILN asked him if the administrator was doing a better job running Griffin than its previous owners.
“Have to say, they appear to be,” Wood said.
Part of the better financial performance was due to some staff resignations.
The wave of resignations followed the expiration of Griffin’s contract to supply Verve Energy in March, which was not renewed.
“It was always our view they [Griffin] were too top heavy, so there has been a fair bit of trimming; when they have resigned they haven’t been replaced in many cases,” Wood said.
The union official put the head count at about 470 compared to the previous workforce of around 500 when Griffin entered voluntary administration in January.
But Griffin is making regular shipments of thermal coal to Indian customers.
Wood said the long-term future for Griffin was in the export market, and the company was building up confidence in this market place.
He confirmed there were no forced retrenchments to this point in time and hoped there were none in the future with any change of ownership.
The union plans to keep a “watchful eye” on the intentions of potential buyers of Griffin, especially if there are companies out there planning to later sell Griffin for a tidy profit.
Last week the Australian Financial Review reported that Stowe and Corpac Partners managing director Robert Crossman were trying to drum up interest to win back control of the company, with the broadsheet attributing this to an “industry source”
Although the total outstanding debt of Griffin exceeds $A1.8 billion, Stowe was reportedly trying to sell his $68 million Devereaux Farm in the state.
Griffin operates the Ewington and Muja mines near Collie, 220 kilometres southeast of Perth.
The company produces more than 3 million tonnes of coal per annum, according to Griffin’s website.
KordaMentha is anticipated to make a sale of Griffin by year-end.
The administrator did not provide any comments.
