The last underground coal mine on the West Coast will suspend its operations as falling prices mean the facility is no longer economically viable.
About 20 jobs are to go at ROA Mine, near Blackball. The union is hoping the mine will reopen when coal prices rise again but says that is, at least, another 12 months away.
Union organiser Garth Elliot said that the workers were devastated by yesterday’s announcement.
Roa Mining Company chief executive Brent Francis told Stuff that staff were informed at a meeting at the mine near Blackball; 30km northeast of Greymouth, at 7 am on Monday.
Twenty jobs have been lost at this time, all underground miners with one from a workshop.
“The decision to suspend our underground operations at our New Rajah operation is regrettable but under the current economics necessary,” he says.
The company needed a capital injection of $3m to go to the next stage of its hydro mining operation but an increase in coal price would also be necessary to be economically viable.
“We have completed the necessary development to commence hydro mining which requires a further capital injection which at this time is not viable”, says Francis.
The opencast operations would continue to meet the requirements of the company’s supply contracts.
Union organiser Elliot says that hundreds of coal jobs disappeared in the last couple of years, and there just aren’t enough jobs in the area for these workers, especially in the other extractive industries.
He also says that the company had their hands tied coal and energy markets globally continued to be affected by falling commodity prices.
The company would be negotiating redundancy arrangements this week.
“The company can’t keep the mine open; that’s not their fault. The important thing now is to make sure the boys get a fair redundancy deal that values the hard work they’ve put in over the years,” says Elliot.
“Hopefully, the mine will reopen when coal prices make it more viable, but we’re looking at at least a year before that happens.”
