The post “Fuelling Dissension” appeared first on Coal Action Network Aotearoa.

Our sources on the West Coast tell us that between 15 and 20 groups of potential buyers, mainly from India, have been through Solid Energy’s big Stockton mine there.

We also know that Bathurst Resources, the Australian coal mining company that fled Australia and set up in New Zealand, and which has managed to make a fearful mess of the unique and biodiverse Denniston Plateau in the course of a largely failed attempt to extract coal from it at an economic price, is trying to buy Stockton.

Work on the Denniston Plateau has now stopped – but the destruction wrought by Bathurst Resources remains.

Republic Investment Management of Singapore recently bought a 20% stake in Bathurst Resources, and they are seeking to acquire more, possibly with a view to taking a controlling interest. This has allowed Bathurst to raise funds in relation to “an impending NZ coal opportunity”, which we believe may be the attempted purchase of Stockton and other coal deposits which Solid Energy has the rights to but has not attempted to mine.

As the industry mouthpiece NZ Resources notes (24 June 2016), “for coal in NZ this is fire sale season”.

On one level, that’s a good sign: it reflects the parlous state of the coal industry both domestically and internationally, and the growing acknowledgment that King Coal, bruised and weakened but still dangerous, must be prised off his throne.

But fire sale season carries a high risk: with the backing of their mystery overseas investors, Bathurst – or one of the companies that has toured Stockton – might be able to take advantage of those fire sale prices to sweep up a bundle of former Solid Energy assets and bundle them with its own resources, such as the nearby Denniston mine.

Bundling Stockton, Happy Valley (adjacent and now being mined), the Escarpment mine on Denniston, and the proposed Te Kuha would create an asset large enough to interest a big overseas miner. Then, taking a cavalier approach to the environment and worker safety alike (as the record shows occurs in India), they might seek to claw what coal they can from the ground while there is still a buck to be made.

Whereas the coal industry in China has been in decline in recent years, in India , coal is still trying to expand. If we are not vigilant, we might end up with a future in which Indian steel mills and cut-rate New Zealand milk powder plants alike are supplied by coal made cheap enough to mine by Solid Energy’s past recklessness and the Government’s continued avoidance of real action on climate change.

This story has been hiding away in the shadows. It’s time for it to be brought into the light.

The post What’s Going On At Stockton? appeared first on Coal Action Network Aotearoa.

The mine, near Maramarua, in North East Waikato, has been dormant since the 1990s, but Solid Energy has now begun work to revive it.  The team confirmed after walking into the site that not only has overburden been removed, but coal mining from a seam has begun.

“Solid Energy is undertaking extensive development of this old coal mine, despite having no customers for the coal, and the international industry being in terminal decline,” said one of the activists, Geoff Mason of Auckland Coal Action.

“Meanwhile, the Government has signed the Paris Agreement which means that we have to get out of coal by 2050, globally, which means coal like this has to stay in the ground.

The team walked into the mine site, and spent around an hour at the coalface, wrapping a excavator in “climate crime scene” tape confirming that new mining has removed the overburden and is now digging up coal. They deployed signs and banners, before leaving again.

Among the activists who inspected the mine today was Phil, a great grandparent.

“I am seriously concerned about a climate changed future for my five great grandchildren – this is why I am here today, to tell Solid Energy and the Government to stop wasting taxpayers’ money, and keep the coal in the hole,” she said.

Auckland Coal Action is also concerned that one of the potential customers for the mine could be Fonterra, the country’s second-largest user of coal.  Fonterra was planning to open its own coal mine at nearby Mangatawhiri, but has put those plans on permanent hold.

“Solid Energy might be eyeing Fonterra as a potential customer, but Fonterra should be looking at changing its energy source to renewable wood and biomass rather than coal,” said Geoff Mason.

“What is clear is that this mine should be kept out of commission – for the climate, for the local environment and for our future.”

Check out more photos from the action, and watch this video in which Nick from Auckland Coal Action explains what’s on the line:

The post Auckland Coal Action: Activists carry out Waikato coal mine inspection, leave climate message appeared first on Coal Action Network Aotearoa.

First, Wellington’s Dominion Post newspaper said in an editorial that it was time for New Zealand to slash its coal use. Then, the same day, Genesis Energy announced that it would close the coal-fired power generators at the Huntly power plant by 2018.

No more coal at Huntly … who’ll be next to abandon coal?

But the writing was appearing on the wall even before these announcements. Not only had the thermal coal price dropped precipitately in response to the rise of renewable energy and environmental concerns in coal’s major markets, but there is a growing political consensus that thermal coal mining in New Zealand must stop.

This consensus does not yet include the National Government. While Energy and Resources Minister Simon Bridges welcomed Genesis Energy’s Huntly decision, and noted that it created further opportunity for renewable energy, he conveniently ignored the Government’s continuing subsiding of fossil fuel mining and use and lack of support for renewables.

The Green Party has long opposed coal mining, and now Labour and New Zealand First are, at least partially, moving in the same direction. In response to the Government’s statement that state-owned coal mining company Solid Energy might be facing liquidation, Labour Party leader Andrew Little – himself a former head of the coal miners’ union, the EPMU – drew a distinction between using coal for heating and power generation, which he agreed was on the way out (audio at 1:41), and using coking coal for making steel, which he said was “part of a green economy.”

New Zealand First’s Richard Prosser was similarly bullish on Solid Energy’s future, but both in his reported comments and in separate discussions with Coal Action Network Aotearoa, NZ First has drawn a distinction between coking coal and thermal coal. New Zealand First’s 2014 election policy calls for a progressive phaseout of coal:

The most effective way to reduce the build-up of greenhouse gases in the atmosphere (primarily carbon dioxide and methane) is to progressively phase out the burning of fossil fuels, especially coal, and instead use renewable energy eg wind-power, photo-voltaic electricity from sunshine, wood fuels, etc. (Climate Change section of NZ First Environment and Conservation policy)

When we met with New Zealand First, they advocated a similar position to the Labour Party: that is, they expressed continued support for coking coal, but agreed that it was time to move away from the mining and burning of thermal coal.

But while businesses and political parties are moving to end the use of thermal coal, there is one large New Zealand company which is bucking the trend – and that, of course, is Fonterra which, as we reported last month, has increased its coal use 38% since 2008 and plans a further major expansion of coal-fired milk drying plants. Fonterra’s low-value-add, high-energy-input business plan is coming unstuck as global milk prices fall. It’s time for Fonterra to take another path.

Though the political consensus is growing against thermal coal, Labour and New Zealand First are both continuing to back the mining of coking coal – that is, coal used for steel production – even though the coking coal price has also slumped, and burning coking coal is no better for the climate than burning thermal coal. You can read Cindy Baxter’s take on the shaky state of coking coal in her recent analysis of the state of play in the coal industry.

The message to companies such as Fonterra is clear: by backing the increased use of thermal coal, you are on the wrong side of history, the wrong side of science, and the wrong side of a growing political consensus.

The post Political Consensus Grows Around The End Of Thermal Coal appeared first on Coal Action Network Aotearoa.

They say the mine is deferred because of delays in meeting environmental requirements, though they told the community earlier it was because of low coal prices.

We calculate the mine is now around 17 months behind schedule. It was to have produced coal this year, but not a sod has been turned. Meanwhile, Solid Energy says it is still considering (“doing work on”) whether to reopen the Kopako 1 mine in the Maramarua coalfield about 5km from the Mangatangi site. This seems to be a re-consideration.

They obtained resource consent for this in 2006 from Environment Waikato. Their website recently announced it and carried job recruitment advertisements, but these have since been removed. An announcement was also seen in the local Franklin paper, and their annual report refers to “resuming production from our Maramarua opencast mining area”.

A local resident received a notice in his letterbox in November saying the mine was going to be reopened; machinery has been moved on site and some surface earthworks done but no coal seems to have been removed yet.

We assume this was a firm proposal until the latest round of Solid Energy’s financial disasters, which may have caused a rethink. Solid Energy said in its 2014 annual report that it has renewed contracts with the two largest coal users in NZ, Genesis (which runs the Huntly power station) and NZ Steel.

In addition, it had signed a new contract for over 100,000 tpy with an un-named customer. Only Fonterra uses coal on this scale. The only alternative we can imagine is a very large new industry that nobody seems to have heard of.

While the NBR report on the latest statements from Fonterra and Solid Energy says we “claimed” Fonterra is the third largest coal user in the country, that is not open to dispute. The figures are all published year by year in MBIE’s Energy in New Zealand report (formerly Energy Data File).

Given the current world price of coal, no business in their right mind would start a new mine for export, so there must be a local customer.

Consider this:

Fonterra has only three coal-fired milk drying plants in the North Island, Waitoa, Te Awamutu and Hautapu, all in the Waikato.Together, they use roughly 120,000 tpy. They have been supplied from Fonterra’s subsidiary,

Glencoal‘s Kopako 3 mine which was scheduled to run out at the end of 2014. Fonterra now says it is due to run out in 2017. It is unclear from observation whether it is still producing some coal, but there is not much machinery there.

Mangatangi (over 100,000 tpy) was planned and scaled to replace Kopako 3 and supply those three plants. If Fonterra has a contract with Solid Energy for more than 100,000 tpy those plants cannot use Mangatangi coal as well.

Solid Energy says in its attempted rebuttal that it sells coal from Rotowaro to Fonterra for its milk drying plants. That will be how they are meeting the new contract while they decide about Kopako 1.

Rotowaro produces a little under a million tonnes a year and is also in decline but is clearly capable of supplying Fonterra’s three North Island plants without reopening Kopako 1 if Solid Energy continues to contract its operations.

Whatever they decide, it is not possible for both mines to go ahead and supply Fonterra, which was the point of our original blog. Fonterra has not commented on contracts with Solid Energy but has clearly “sneaked around the corner”.

Why does all this matter? It matters because coal is the biggest contributor world wide to climate change, and most of what is left must stay in the ground if we are to prevent climate chaos. This is the real issue – everything else is obfuscation.

Unlike NZ Steel, which has very limited options, Fonterra has a ready alternative. Wood chips from forestry residues can run boilers for heat, and in many NZ industries they do already. Fonterra has claimed for over a year now that it is actively investigating renewable fuels for its heat plant, but has made no demonstrable progress and has stopped the trials it was doing at Studholme.

Why are these two companies prevaricating and trying to confuse? What we need is some transparency and some honest communication.

Footnote: there have been media claims that Coal Action Network Aotearoa is trying to stop coal mining. It is very clear on our website that we are not – we are trying to stop new mines opening so the rest can be phased out as they deplete and miners retire, without the abrupt and deep disruptions in coal mining communities that Solid Energy has caused with its drastic and sudden layoffs.

The post Fonterra Sneaks Round The Corner – Part 2 appeared first on Coal Action Network Aotearoa.

When Solid Energy went belly up with huge debts and failed businesses like its briquetting plant in Southland, the Government was forced to drop it off the list for privatisation because it was no longer fit for sale. Right?

Wrong. Solid Energy has been 46% privatised under our noses without most people realising what was going on.

There was considerable public anger that taxpayers’ money was used to bail out the failed company so it could try to trade its way out of its difficulties. However, part of that deal was persuading the banks who owned much of its debt to write off $75m of that debt in exchange for equity – shares in Solid.

Coal Action Network activist at the now mothballed Mataura briquetting plant – supposed to provide local jobs, but didn’t.

The banks were very reluctant. It wasn’t their idea of a good investment. There is no sign they had any moral qualms about fossil fuels and the future of the planet, nor that they were concerned about the carbon bubble making coal a risky investment. But they should have been.

Both of these factors have caused investment funds overseas, including churches and university pension funds, to divest. Rather, the banks were concerned that the company was a basket case and converting their loans into shares meant they might never see any of it again. They may well be proved right.

Tokyo Bank challenged the debt restructure in the High Court, backed by the other banks, and lost: http://www.interest.co.nz/bonds/68407/bank-tokyo-mitsubishi-take-unsuccessful-solid-energy-debt-restructure-challenge-chin-won

TSB subsequently wrote off the value of its new shareholding, $13.8m, reducing its profit this year by 5.9%: http://www.nbr.co.nz/article/tsb-bank-profit-slips-59-solid-energy-writedown-bd-156961

This much has been reported. However, the net effect on Solid’s ownership is less well known. The effect was to reduce the Crown’s ownership of this former SOE from 100% to 53% – almost exactly what was intended in the initial privatisation plans. The rest, 46%, is owned by the banks, all of them apart from TSB overseas owned. The current shareholding is:

Why would this matter? Aren’t we better off without a poorly performing coal company that pays no dividends and will eventually have stranded assets? Well, maybe it’s not that simple.

We are in a transition, whether Solid and the Government recognise it or not, from fossil fuels to renewable energy. That transition could be smoother or more bumpy, depending on how Solid Energy is managed.

As long as ministers have the power, as they do for an SOE, to give directions to the board, they can influence that transition in the public interest. (The fact that no government has so far showed any interest in doing so doesn’t take away from the hope that one day they might actually recognise climate change as a problem that requires serious action).

For example, Solid could have been instructed to open no further mines, to manage its existing mines well and pay down its debt, and to put its considerable inventiveness into developing transport fuels based on waste wood rather than lignite – possibly in partnership with Crown-owned Scion. That opportunity has now gone – a 53% majority could not impose that on the rest of the shareholders.

As it happened Solid Energy’s small ventures that would have been in the public interest had they been well managed, and would have helped smooth the transition to a low carbon future – Biodiesel NZ (biogold biodiesel) and Nature’s Flame (wood pellets) – were often conveniently blamed for the SOE’s demise. Two former SE managers now own Biodiesel NZ and are confident of making a profit.

“We are very confident that Green Fuels can provide very competitive pricing in comparison to mineral diesel. Using Biogold™ enables companies and organisations to do the right thing for our environment. A responsible attitude towards sustainability is becoming an increasingly hot topic especially in the current conversations around building a ‘new’ Christchurch and maintaining a ‘pure’ New Zealand.” (http://dieseltalk.co.nz/news/green-fuels-nz-purchases-biodiesel-facilities)

If Solid succeeds in pulling itself out of its hole, a hole that appears to be getting deeper in the face of continued low coal prices that show no sign of rallying, the banks are likely to sell their holdings as soon as they can. This will not be to NZ Mums and Dads, but more likely to overseas investors.

As we’ve pointed out on this blog before, the Indian steel industry has shown considerable interest in our coal assets:

http://coalactionnetworkaotearoa.wordpress.com/2014/03/06/bridges-india-coal/

Handing over a large chunk of these coal assets would create a further vested interest to join other big industries pushing against New Zealand achieving a decent climate policy.

Under modern free trade agreements, and especially under the TPPA if it is signed, foreign investors will have the right to sue our government for any change in policy that impacts on their profits. Goodbye carbon tax, or even a renewed ETS. The TPPA is itself a powerful reason to resist privatisation.

“Privatisation by stealth” is the hackneyed term that comes to mind, but the point here is that we were never told this was the effect of the bailout, but were left to figure it out. More contempt for democracy.

It is hard to see any sensible way forward from here. Coal is a sunset industry and the necessary transition seems likely to be a very bumpy one.

The post The Privatisation of Solid Energy appeared first on Coal Action Network Aotearoa.

Our new report released today.

It doesn’t include new mines such as Bathurst’s plans for the beautiful Dennison Plateau, where operations have stalled and 29 workers were recently laid off as the coal price has plummeted in the face of a global oversupply.

But imagine if the Government was to draw a line in the sand and state that there would be no more coal mines in Aotearoa.  If they did that today,  this would give coal mining communities the time to adjust, to plan a transition away from coal that involved the entire community, and led to a sustainable future.

This is the argument we set out in our new “Jobs After Coal” report, released today.

Our research has found that New Zealand’s coal mining communities generally have fewer full time jobs and lower per capita income than their surrounding region or district.

This is totally contrary to the coal industry’s claims of employment and prosperity.  Only two mining communities in the entire country have higher median incomes than their surrounding district and only one has higher employment.

It’s clear that coal does not bring the promised prosperity from digging up coal, coal that will ultimately end up in the sky when it’s burned, contributing to arguably the most pressing issue facing the world today:  climate change.

In our report we outline ways in which communities can transition away from coal to new sources of prosperity and jobs as international markets and climate change concerns lead the phase out of coal.

Coal is a boom and bust industry. When the bust comes, coal mining communities have been left with no support – except for plans for more boom and bust coal mines.  Over the last few years we’ve seen so many jobs lost, overnight, with families and communities thrown into chaos and facing an uncertain future.

In gathering information for our report, we called every single coalmine in the country, to find out just how many people are employed.  The final figure is 1259 jobs.

Yet the Government continues to go on about the need for coal mining jobs, pushing coal as a job creator, yet it barely blinks at the nearly 40,000 jobs lost in manufacturing in the five years to 2012.

The international situation, with record-low coal prices, and an oversupply, with countries like China and India moving to renewable energy and to cut pollution,  our coal industry is unlikely to recover any time soon.

Talk of a carbon bubble is now gaining traction as people begin to understand the idea that we have only a small ‘budget’ of carbon we can afford to emit to keep global warming below two degrees C.

Coal is a sunset industry, and fossil fuel investments will be left as stranded assets

We could pretty much consider Solid Energy as a ‘stranded asset’ these days, with banks forced to back a company that will continue to fail under the ongoing ‘perfect storm’ of low prices and the high dollar.

Over the last week we’ve seen two institutions move to divest themselves from fossil fuel interests:  the Dunedin City Council – and the Anglican Church’s New Zealand and Pacific Dominion – the first branch of the Anglican church worldwide to do so.

Jobs After Coal sets out many alternatives to mining, especially in renewable energy and an expanded use of wood. Mining skills are applicable over a wide range of different industries.  However, this transition will not happen without planning, leadership, resources, and involvement of the whole community.

We have to draw a line in the sand for the end of coal in New Zealand, then plan for the day that this happens. Involve the whole community and plan a transition that doesn’t dump people out of jobs overnight.

The sooner we prepare for a future where mining towns can determine their own paths without dependence on the vagaries of a dying industry, the better.

The post Coal communities deserve better than the “boom and bust” coal industry appeared first on Coal Action Network Aotearoa.

It’s not to late to change banks in time for our week of action.

When we started our campaign against Westpac because of its investment in Bathurst Resources, the company bit back.

No, no, we don’t invest in Denniston, they said.

We were investing in Bathurst before they were planning Denniston, they said.

The facilities we have with them relate to their existing operations, they said. Nothing to do with Denniston, they said.

While we have written to Westpac to clarify all of these points, we haven’t heard back.  They’ve gone silent, instead promoting their so-called sustainability.  But Bathurst’s half yearly report, released recently, is very useful and has provided all the information we think we need.

It certainly doesn’t tell us anything that would lead us to call off the campaign, as Westpac thinks we should.

The Bathurst report (page 18) goes into great detail on its relationship with Westpac  – perhaps in response to our campaign.  Here’s the detail on Westpac from that report:

“In July 2012, the Group obtained a finance facility with Westpac New Zealand Limited for the acquisition of a new mining fleet. The total amount available and drawn on the facility as at 31 December 2013 was $3.5 million.”

This new mining fleet is currently being deployed at the Cascade mine, just down from Escarpment (Denniston).  The thing is, Bathurst’s mining all it can out of Cascade, because it needs as much money as it can to fund the new mine. 

Will none of that fleet be used to take the beautiful Denniston plateau apart?  Even if it isn’t, all of Bathurst’s mines are being used to finance the new one.  So it’s a bit silly to claim they’re not related.

It’s also a bit silly to claim, as they do, that their investments in Bathurst were made before the company had made any plans to mine Denniston.  Bathurst’s whole entry into New Zealand was always all about Denniston and the coking coal up on that plateau.  They’ve bought up all the mines they currently own in order to get this new mine (and the next five mines next to it) up and running.

Next quote from Bathurst’s report:

 “In addition, the Group has with Westpac New Zealand Limited a term loan $1.2m, finance lease facilities $0.3m, and bank overdraft facilities which were unused at 31 December 2013.”

There are no caveats here about where this money from Bathurst’s term loan with Westpac should be spent.  Again, this is about Bathurst having enough money to keep going and start digging up the Denniston Plateau.

Right now the company is in dire financial straits, not helped by the low price of coking coal.  But it’s abundantly clear to us that Westpac is helping this company keep afloat through both loans: the $3.5million loan for its mining fleet and the $1.2million loan and the finance lease facilities.

While Bathurst has said this all-time low price of coal means they won’t start digging any up yet, (while laying off 29 workers), once it gets all the permits approved, it plans to start readying the Denniston Plateau for mining.

We have yet to find out whether this includes removing all the “overburden” [read: beauty, biodiversity], but, with Forest & Bird, have called on them not to do this and for the Minister of Conservation to hold back his permission.

We also note that the Buller District Council is getting very excited about the planning permissions being signed off. It looks like Bathurst may be clear of all the red tape pretty soon.

So it’s still a great time –  if you’re a Westpac customer who wants to do something about Bathurst’s plans to dig up a beautiful part of New Zealand for coal that will ultimately end up in the sky and contribute to climate change – to

Sign up to Make the switch!

It’s not too late to switch away from Westpac in time for our Week of Action beginning 7^th April around the country.  So get switching people!

Final note: Westpac is also one of the banks propping up Solid Energy, who, along with Bathurst Resources, are both pretty shaky companies. You’d think they might learn that coal is a bad investment on so many levels.  Maybe they should follow the path of Bill Koch (younger brother to the infamous Koch Industries brothers), who is getting out of the coal mining industry because, in his words, it “has kind of died.”

The post The real deal on Westpac’s coal funding appeared first on Coal Action Network Aotearoa.

Energy and Resources Simon Bridges with the Indian steel delegation in his office in January

Statements made in Indian media by Indian Steel Minister Beni Prasad Verma after he met with Energy Minister Simon Bridges on 30 January indicate a clear expectation of some kind of deal between the two Governments on coal, said the Coal Action Network Aotearoa today.

“We are looking forward to the Government of New Zealand for allocating mineral assets to Indian public sector companies on a Government to Government basis,” said the Minister in an official press statement after the meeting with Bridges.

Today in the House Steven Joyce, on behalf of Simon Bridges, denied that any promises had been given, but refused to rule out sales of coal mines to the Indians.

The “asset” likely to be of most interest to the Indian steel industry would be Solid Energy’s Cypress mine at Happy Valley on the West Coast, where the company has now begun work to remove the “overburden” of the West Coast habitat that has lain idle for several years.

Solid Energy also owns permits for seven other, as yet undeveloped coal mines, four of which contain the coking coal for steel the Indian Government delegation was after.

“The last thing NZ needs, in this era of impending climate change, is a powerful overseas company with an insatiable appetite for coal, entering our country. It would clearly not stop at just one mine,” said Coal Action Network spokesperson Jeanette Fitzsimons.

“Coal Action Network is opposed to any new mines opening in New Zealand, and wants to see a gradual phase out of coal mining as the mines deplete and the miners retire”.

“New Zealand has a wealth of opportunities to invest in clean energy that will not change the climate or damage workers’ health. That should be our priority,” she said.

More than 80% of India’s coal is produced by state-owned Coal India (or its subsidiaries), which has a reputation for breaking environmental regulations – the reason the company’s growthdropped to two percent in 2010.   342 mine deaths were recorded in the four years to 2012 in mines operated by Indian Government-owned coal companies.

The Pike River mine was partly owned by Indian coal companies, who had four representatives on its board. 

“Given the Indian coal industry’s terrible environmental and safety record – would you trust them to operate safely in New Zealand’s environment?” asked Ms Fitzsimons.

The post What agreement did the Government make with Indian coal interests? appeared first on Coal Action Network Aotearoa.

The beauty of the Denniston Plateau that Bathurst may remove for nothing. Photo: Forest & Bird

Coal Action Network Aotearoa today called on the Minister of Conservation, Nick Smith, to not issue Bathurst Resources the DOC consent it needs to enter and operate its planned mine on the Denniston Plateau, in light of the company’s terrible financial state.

Bathurst has announced today that it is making 29 workers redundant and that it’s not going to mine coal at Denniston until international prices have recovered. However, it intends to go ahead and set up everything else on the plateau in readiness for mining.

This could include the removal of the “overburden” – the beautiful, biodiverse-rich landscape.

“Bathurst is in a terrible financial state.  Like Solid Energy, it’s facing a ‘perfect storm’ of tanking coal prices and a strong NZ dollar – quite a different situation from 2008 when the company started sniffing around the West Coast for coking coal,” said Cindy Baxter of CANA.

“There is no way this company should go ahead with wrecking the plateau, only to sit and wait until the coal price improves, something international commodities commentators are not forecasting to happen any time soon, due to an oversupply in the market.”

“We could find ourselves in a situation where the company goes under, having destroyed the beautiful Denniston Plateau – for absolutely nothing.  The Minister of Conservation needs to step in and refuse to let the company do this,” she said.

“There is no way Bathurst will be able to front up any time soon with the $22 million promised to DOC in the deal Mr Smith made with the company.”

The latest statement from BRL shows the company is having to restructure to keep afloat, and is to shed 29 jobs, instead of providing the 225 jobs it keeps promising – the 225 jobs that would only be there if it ramped up production to one million tonnes a year.

The price of coking coal has tanked, miles below the $165 the company needs to even break even, let alone make any profit. This break-even price was confirmed in a “caucusing agreement” between Bathurst and Forest & Bird at the Environment Court in November 2012, when they agreed that “a minimum expected price for the project to proceed is perhaps US$190.”

See also CANA’s recent blog on Bathurst’s perfect storm.

The post Minister of Conservation should halt Denniston Plateau mining appeared first on Coal Action Network Aotearoa.