The company plans to cut production at the mine by a quarter to 1.4 million tonnes per annum (Mtpa) from 1.9Mtpa in the next fiscal due to declining international coal prices. The proposed plans will affect 137 jobs at the mine.
Solid Energy CEO Dan Clifford said that the changes proposed were a necessary response to the depressed export market which was expected to remain for quite some time.
"On current pricing projections, we have to minimise our losses by reducing costs so that we can keep the mine operating," Clifford added.
"While we are planning to continue with reduced production and reduced staffing levels for the next two to three years, we will still be able to meet our long-term customer contracts while retaining our options to respond to changes in the market."
Additionally, the company plans to reduce the scope of contracts and decrease contractor jobs by about 50.
Solid Energy plans to commence a two-week consultation period with Stockton employees, following which a selection process will be carried out for vacant roles.
Image: Part of the Stockton Opencast Mine. Photo: courtesy of O.Duke.
