Sharechat Logo

Labour Dept closes Solid Energy mine on safety concerns

Tuesday 21st February 2012

Text too small?

Solid Energy, the state-owned coal miner, has stopped work at its Spring Creek underground mine after being issued with a prohibition notice by the Department of Labour.   

The mines inspectorate issued the notice yesterday after three separate incidents at the mine. Solid Energy chief operating officer Barry Bragg said the incidents occurred due to systems breakdowns, but multiple safety controls “proved effective”. Solid Energy shut the mine for five months in the wake of the 2010 Pike River disaster to carry out safety checks.

“We recognise that expectations for underground mining have been raised substantially,” Bragg said in a statement. “We will work very closely with the department to ensure we meet our and their expectations prior to resuming mining at Spring Creek.”

The notice comes just three days after the department closed the Broken Hills gold mine in the Coromandel after that operation failed to bring itself up to standard following a January inspection. The Coromandel mine was given an improvement notice outlining where it didn’t comply, but those issues weren’t remedied.

Mine safety has been under close scrutiny since the November 2010 explosions that killed 29 men at the Pike River underground coal mine and prompted a Royal Commission on inquiry into the disaster.

Solid Energy said the stoppage of underground work isn’t expected to impact on the mine’s customers, with the operation in a development phase, producing limited output.

Earlier this month, Solid Energy bought back the 49 percent stake in Spring Creek it sold to American multinational company Cargill in 2007 for an undisclosed price.

The closure came on the eve of Solid Energy’s first-half earnings, which are due out today.

(BusinessDesk)

BusinessDesk.co.nz



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

Blis Technologies forecasts first profit of more than $700k in 2017
MARKET CLOSE: NZ shares rise; Comvita, A2 Milk gain, Steel & Tube extends slide
NZ dollar rises above 71 US cents on lack of urgency from Fed to hiking rates
Westland Milk names former Danone executive Toni Brendish as CEO
Hart's wealth falls but he retains top spot in NBR's 30th anniversary rich list
Energy Mad hails 'turning of the corner' at AGM
China Animal Husbandry to take 72% stake in Mataura Valley Milk, fund $200M plant
Genesis Energy CEO England wastes no time overhauling executive team
FMA issues conduct guidance as market correction risk grows
Palliser Estate founder shareholder Richard Riddiford dies after short illness

IRG See IRG research reports