The NZ Government will Not Invest Any More Money in Solid Energy But Administration in Place to Wind Down Business GraduallySubmitted by Kunal Garg on Thu, 08/13/2015 - 10:15
Financially troubled state owned Solid Energy Ltd of New Zealand has been trying to do what it can to stay afloat. In the last two years, the company has considered privatization, expense cutting by trimming jobs, shutting unprofitable mines but nothing seems to be working as the price of coal continues to drop.
The Auditor-General will question the chief executive and former chief executive of crown-owned Solid Energy( SOE) about how the company came to be in a unstable financial position where a number of people lost their job.
Labour's SOEs spokesperson Clayton Cosgrove has welcomed the decision saying it will provide some answers to those 700 people who lost their jobs as a result of its near collapse.
The Auditor-General is called by the opposition parties to inspect that how Solid Energy has landed in such an enormous mess.
An after-tax loss of more than $335 million dollars for the 12 months ending June has been reported by the state-owned mining company.
The state-owned coal miner is in debt of $381 million and is discussing with its bankers to make an effort in securing a deal to decrease it.
Spokesman Bernie Monk on behalf of families appealed for an answer for three major accidents held at West Coast namely the Brunner, the Strongman, the Pike. The Royal Commission inquiry was presently investigating the underground explosion at Pike River, which resulted in deaths of 29 people.
The Green Party today expressed that plowing up the reserves of lignite in Southland shall be increasing global greenhouse gas emissions. Don Elder, CEO of state-owned Solid Energy stated in their yearly conference yesterday that taking out the low grade coal lignite shall be cutting down global emissions.
The Green Party greeted news in the present day that Solid Energy has pull out its plea against Hydro Development Limited's (HDL) resource give permission to construct a power station on the Stockton plateau.
Green Party conservation spokesperson, Kevin Hague expressed that ultimately, they have a new idea for smart new power generation on the West Coast.