The mining company, Solid Energy, announced on Friday that 137 workers at the Stockton mine on the West Coast and another 50 contractors will lose their jobs. At the moment 521 people work at the mine. In the past 2 years, more than 200 workers at Stockton have lost their jobs. However, the company does not plan to close down the mine.
The international price for high-grade coal has dropped from US$300 in 2012 to US$120 a tonne now. Solid Energy needs at least US$145 a tonne to pay their bills.
Stockton is the largest open-cast mine in New Zealand. It is situated 35 km north of Westport on the west coast of the South Island. Coal is taken by train from Westport across to Lyttelton (the port in Christchurch) where it is shipped to India, China, Japan, South Africa and Brazil. It is used in the steel industry.
Most workers who lose their jobs cannot find another job on the West Coast. They will need to move to a city. The main industries on the West Coast are dairy farming, forestry and mining. Local people say that the government has not put enough money into developing the regions.
Vocabulary
- contractors – people who are paid for the work they complete; they are not paid by the hour or by the day.
- open-cast mine – not underground
- regions – small towns and rural areas