New Zealand - more closures

Jobs likely to go at Waihi gold mine

Radio NZ.

25 September, 2012

Newmont Waihi Gold has announced that about 20 employees are to lose their jobs at the company's gold mine in Waihi.

The company is starting to consult staff and contractors but the exact number of positions that will be lost will not be known until 2 October.

Newmont Waihi Gold says it has been significantly affected by costs rising faster than gold prices over the last five years and cost cutting needs to start now in order to keep the mine viable.

The company says it wants to offer job changes rather than redundancies where possible and a number of staff are being offered work at other Newmont sites.

It is also likely there will be significant scaling back of the company's exploration programme.

The company says the cuts are part of a wider package of job cuts across all Newmont sites globally. Staff at Newmont's four mines and regional headquarters in Australia have also been notified this week of likely redundancies.

Job cuts essential for Solid Energy survival - Elder

Solid Energy chief executive Don Elder says job cuts are necessary despite predictions that coal prices may be back to sustainable levels next year

Radio NZ,

25 September, 2012

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The company on Monday announced some 460 jobs would go as it restructures its business to cope with the global downturn in coal sales.

Spring Creek mine near Greymouth will be the worst hit, with the jobs of 234 staff to go and those of 130 contractors on the line.

Sixty-three job losses have been confirmed at Solid Energy's Huntly East mine in Waikato, and staff numbers at the company's Christchurch head office would fall from 313 to 150.

Dr Elder told Radio New Zealand's Morning Report programme that although some predict prices will return to normal next year, there is too much uncertainty in the industry to retain all staff.

"People are saying it feels as though we could be down for quite a while," he said.

"We'd like to think we'll be back next year - some market observers are talking about markets coming back in 2013 - but you can't afford to bet the company on that.

"You have to do the right thing to make sure you can survive no matter what happens."

Spring Creek cuts hit West Coast community

Greymouth risks losing many of its most skilled and highly paid workers with news that one of the town's biggest employers, the Spring Creek mine, will be mothballed.

Along with the jobs of workers and contractors, the cuts will affect the incomes of many West Coast businesses.

Greymouth Business and Promotions Association chair Kerry Miedema says every job at the mine supports a myriad of related jobs such as engineering and IT, while retail and hospitality sectors benefit indirectly from having the mine workers in town.

Mrs Miedema says the the region is already suffering a downturn in its other big earner.

"Most industries go in cycles - unfortunately for us mining and tourism are both on a down cycle but I remain optimistic that it's going to pick up in future. We just hope that it picks up before the skills are lost in the community."

She hopes the opportunity to manufacture building materials on the West Coast to be used in rebuilding in Christchurch will go some way to keeping the skilled workers in the region.

Pike River purchase

Earlier this year Solid Energy agreed to buy the Pike River coal mine for $7.5 million dollars, and Mr Elder says in hindsight the company would rather not have the mine.

Initially, Solid Energy was not interested. "It was only when the receiver came back to us in February and said, basically, you can have it for the value of assets you'd be able to sell in a year or so that we became interested," Mr Elder says.

Mr Elder says the mine hasn't really cost Solid Energy anything because it can sell the assets it got within a reasonable space of time.

He says the company is not going to walk away from commitments made to the Government and bereaved Pike River families, but says this has cost it time and effort.