Retrenchment 2011 To 2013
In mid-August 2012 Don Elder announced a likely decline in Solid Energy's revenue of $200 million and a review of its operations. On 25 October 2012, Solid Energy confirmed it was moth-balling the Spring Creek Mine and that 220 miners would be made redundant.
Also in 2012, Solid Energy purchased Pike River Coal, which had gone into receivership after the Pike River Mine disaster of 2010. The sale was completed in May.
In November 2012, Solid Energy released its annual report for the financial year ended June 2012. Solid Energy made a loss of $40 million this year, a decline of 146% from the 2011 year's profit.
Workers at mines owned by Solid Energy have repeatedly rejected offers to take pay cuts and reduced hours. The company made 235 employees redundant at the Spring Creek mine, and reduced the workforce at the Christchurch head office by 163 jobs. mine, as well as cutting 60 jobs at the Huntly East mine.
In January 2013, workers at the Stockton Mine agreed to reduced hours and pay after months of negotiations with owners Solid Energy, who had dis-established several hundred jobs in the previous year.
On 4 February 2013, board Chairman Mark Ford announced that Don Elder had resigned as Chief Executive and that Garry Diack would be the interim CEO until a permanent CEO was appointed. On 22 February 2013, Solid Energy stated that its half-year result would include a further "significant loss" and that its debt had increased to $389 million.
The Government has, on a number of times, not ruled out using taxpayer money to bail out the company.
Finance Minister Bill English distanced the Government from the state-owned company's woes, saying it would no longer be paying out large bonuses to executives.
In 2011, Solid Energy had valued itself at $3.5 billion, but a later review said that was at least $2 billion too high.
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