From nzresources.com Comment: Jobs versus environmentalists...

From nzresources.com


Comment: Jobs versus environmentalists still a hardline issue on West Coast
Simon Hartley — 26 September 2012


The Government -- which told Solid Energy employees yesterday it would not recapitalise the beleaguered State owned enterprise to save 230 mining jobs -- has separately called on objectors to coal mine developer Bathurst Resources Ltd (ASX & NZX: BTU) to withdraw from a pending Environment Court challenge.

The pro-resource sector National-led Government has long been at odds with environmentalists over economic development called on objectors to step aside to allow jobs to be created.

Not surprisingly key protester Forest & Bird rejected the call to withdraw from legal action, labelling the Government's reaction as panic Forest & Bird conservation advocate, Nicola Toki said that to “suddenly come out the day after Solid Energy lays people off is hitting the panic button.”

She said the Government was attempting to “deflect” the “glare of mismanagement” of Solid Energy, given it was reported Prime Minister John Key had said the coal company had unrealistic coal prices built into forecasts.

Plummeting coal prices down 30%-40%, an estimated $200 million revenue decline this financial year, prompted Solid Energy to announce on Monday the axing of 25%, or almost 450 jobs.

Yesterday Minister for State Owned Enterprises, Tony Ryall, told a delegation of Solid Energy miners visiting the Beehive that the Government would not offer a one-off cash injection to support the Spring Creek underground mine.

Minister of Economic Development Stephen Joyce had a few hours earlier called on Forest & Bird and West Coast Environmental Network to withdraw their Environment Court action against Bathurst, which is due to begin in late-October.

“The Escarpment Mine [of Bathurst's] is an open cast mining project that is ready to go and would provide 225 jobs and incomes for workers and their families on the West Coast straight away,” Joyce said.

In a week when almost 670 jobs have been lost at Solid Energy, KiwiRail (158) and Nuplex (60), Newmont Waihi Gold announced yesterday 20 jobs would have to go as operational costs surged faster than gold prices.

Bathurst, which is developing a specialist hard coking coal mine adjacent to Solid Energy's Stockton coal mine on the Denniston Plateau, could offer at least 225 jobs in its start-up phase; wanting to quickly build exports from 1 million to 2 million tonnes per annum from the estimated 80 Mt resource.

Bathurst's application and granting of more than 20 consents from two West Coast councils has been dogged at every turn by Forest & Bird and West Coast Environmental Network; appealing in the High Court, Environment Court and Court of Appeal against the granted consents and climate change issues which have delayed Bathurst's full start-up by up to a year.

Bathurst said it has spent $250 M in acquisitions, development and costs of?operating mines it has purchased along the way.


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