By Annabelle Tukia
Solid Energy has cut more jobs, axing another 65 workers at its Christchurch head office, a day after firing a 125 people at the Huntly East mine.
And in Greymouth they're counting the cost of the suspensions at Spring Creek mine while a decision is made on its future.
Greymouth retailer Clark Ellery says the region has been through some tough times in the last few years, with the Pike River disaster and a drop in tourists since the Canterbury quakes, so news that Solid Energy is likely to mothball its Spring Creek mine has come as a crippling blow.
“Two-hundred-and-fifty jobs, we've got a population of 8000 - it's probably the equivalent of 40,000 people in Auckland jobs getting affected, so that puts it in perspective,” says Ms Ellery.
Solid Energy broke the news to its workers yesterday telling them it had suspended all operations at the underground mine until it had reviewed its viability.
Spring Creek contributes about $37 million a year in wages to the local economy, with the average wage at the mine being $90,000.
“We do depend on the mining industry for a lot of injection of cash into our local economy, so when they don't know what they're doing I can see them tightening up their wallets and cheque books, and things like that,” says Ms Ellery.
And locals are bracing for the worst.
“I think it’s terrible for the West Coast because so many are going to lose their jobs and a lot of them will take off to Australia,” says another resident, Anne Parkinson. “The town just cannot handle 230 people out of work.”
“I'm part of a small business and I know what it was like after Pike River and it took nine months to build back up again, so the impact will be huge,” says Joy Willman.
The Spring Creek workers will all remain on full pay while the review is carried out, but once the mine's future has been decided, the money from one of the town's biggest employers will likely be sorely missed.
3 News