West Australian Premier Colin Barnett has overturned his energy minister’s commitment to guarantee the entitlements of 500 workers at a coal mine that is in the hands of administrators.
Griffin Coal, WA’s oldest and second largest coal supplier, was placed in administration on Monday after missing deadlines for the payment of debt instalments and tax liabilities.
It has total debts of about $700 million.
Energy Minister Peter Collier said on Monday that the coal business of Monaco-based magnate Ric Stowe, which includes an open cut mine and a power station in WA’s south-west, will not be bought out by the state government.
Mr Collier suggested it could be sold but said the government’s key focus was Griffin Coal’s 500 employees and that it would guarantee the workers’ entitlements.
He said this would be done ‘‘regardless of the outcome or regardless of what the administrator actually concludes’’.
But Mr Barnett said late on Monday that any payout of workers’ entitlements would be decided by the administrators, who were in discussions with the government.
‘‘The government is meeting the administrators to try to ensure that whatever decisions they make are fair for employees and that workers’ entitlements are preserved,’’ he said.
‘‘Being a private company this is a matter for the administrators and the company and there is no government money involved.
‘‘This is an effort to try to ensure that the employee is not overlooked or unfairly treated in the decisions made by the company’s administrators.’’
Griffin Coal’s assets include the Muja open cut mine, which is one of the largest in the world and has been in operation for 56 years, and an associated power station near Collie in the state’s southwest.
Federal opposition resources and energy spokesman Nick Minchin said on Tuesday the federal government needed to get actively involved to ensure Griffin Coal continued operating.
Its Collie mining activities contributed significantly to the WA economy and the developments were ‘‘deeply disturbing’’, Senator Minchin said.
‘‘The Rudd government needs to step up and show some leadership and work with the WA government, the administrators and unions,’’ Senator Minchin said in a statement.
He also called on the government to exclude coal mining fugitive emissions from its ‘‘deeply flawed’’ carbon pollution reduction scheme (CPRS).
Griffin Coal produces more than five million tonnes of coal annually, most of which is used for domestic power generation.
It is understood the power stations have not been placed in administration but this could occur.
Griffin Coal has $US475 million ($528.5 million) worth of unsecured debt to US bondholders and missed a December 31 deadline for a $25 million payment.
It has also missed a deadline for a $5 million payment to the Australian Tax Office, the first instalment as part of $25 million settlement reached last year.
AAP
