Spring Creek Underground Mine

The Spring Creek mine is an underground coal mine near Dunollie, north of Greymouth on the West Coast of New Zealand's South Island.

The point below is only for the approximate area of the mine,

The mine is owned by Solid Energy and was placed into “care and maintenance” in September 2012 following a period of uncertainty, at the end of which staff were told that their numbers would fall from about 254 to 32.

Background
Spring Creek coal was used by industrial customers in New Zealand and exported to steelmakers through Lyttelton Port of Christchurch".

Between 2007 and 2011 the mine was operated through a joint venture with Cargill, which bought a 49% stake in the project. Solid Energy then resumed full ownership of the mine. In its 2011 annual report Solid Energy stated that in November 2010 production at the mine had to be suspended to allow for the implementation of a comprehensive safety programme. Production during 2011 fell by 24%. Development work resumed in February and extraction in May 2011. During 2011 $19 million of capital expenditure was put into Spring Creek. The company stated that it was "planning for a future extension west into the Rapahoe East mining area."

In August 2012, however, Solid Energy announced that, because of “extremely challenging market circumstances” operations at Spring Creek would be suspended pending a review. In September 2012, Chairman, Mark Ford, announced that Spring Creek would be closed because it had not been profitable for some time and had lost more than $100 million. Staff numbers would fall from about 254 to 32. In addition, up to 130 contractors’ jobs would be affected.

Project Details
Owner:  Solid Energy Location: Dunollie, near Greymouth, West Coast of New Zealand's South Island Coordinates: -42.388029,171.263366 (approximate area only) Status: Operating Production capacity: approx 45-70,000 tonnes per annum. Type of coal: Employees: 230

Related SourceWatch Resources

 * New Zealand and coal
 * New Zealand Mining Industry Association
 * Solid Energy