NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Energy

Stockton mine cuts $32m from budget

By Lee Scanlon of the Westport News
APNZ·
12 Nov, 2012 05:40 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The pull-back from underground mining has been made in favour of lower-cost, open-cast operations. Photo / APN

The pull-back from underground mining has been made in favour of lower-cost, open-cast operations. Photo / APN

Buller's Stockton opencast mine is cutting $32 million from its budget, but needs to save more by making shift changes or its viability will be in doubt, says the mine manager.

However, workers are sceptical and want to know how much management proposes cutting from its own pay packets.

Stockton Alliance manager Michael Harrison said Solid Energy's export opencast operations, including Stockton, were close to marginal at current coal prices and with the New Zealand dollar so high.

"We've already cut back the use of contractors to concentrate on making the best use of our fleet," Mr Harrison said in a newsletter to workers.

"To date, our plans will result in savings of approximately $32 million. However, unless we can make the savings which come from the shift change and other adjustments to how we operate and manage the mine, Stockton will no longer be a viable operation."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Engineering, Printing and Manufacturing Union area organiser Garth Elliot said machinery operators faced a wage cut of up to 17 per cent if they agreed to move from 12-hour to 10-hour shifts. They could lose between $9000 and $13,000 a year each.

As far as the operators knew, managers weren't facing any pay cuts.

"The guys are feeling they are the only ones taking this on board, that they are the only ones feeling the pain."

However, workers also had to consider what was happening to Solid Energy nationwide. "They're obviously not in a very good financial state and they've got to make the best out of Stockton.

"The company are saying to us that this (10-hour shifts) is their best option in regards to making the mine viable."

Discover more

Energy

Drop in coal triggers Solid Energy rain check

21 Aug 05:30 PM
Commodities

Solid Energy poised to unveil mine cuts

28 Aug 07:45 PM
Energy

Spring Creek mine work suspended

29 Aug 04:15 AM
Energy

Soild Energy mine closure not a done deal - Key

29 Aug 09:30 PM

Mr Elliott said the workers doubted Stockton was as under threat as management had claimed.

"Stockton has been profitable in years gone by and what's actually changed that now? They find that very hard to accept."

Advertisement
Advertise with NZME.

Half the operators had voted in a secret ballot on the shift proposal last Thursday, he said. The rest would vote at 5.30pm tomorrow. None of the votes would be counted until after the second vote.

Workers on the mine's aerial ropeway and at its workshops were not affected by the proposed shift change.

If operators rejected the proposal, he hoped Solid Energy would be prepared to discuss alternatives.

.

Maximum plant use

The newsletter said the Stockton Alliance must get the maximum use from its core mobile plant to meet the mine's cost targets. The Alliance also had to meet the mine plan and deliver the amount and quality of coal Solid Energy's customers needed.

Advertisement
Advertise with NZME.

To do that, the mine must have 87 pieces of equipment working every shift but fewer annual hours from each piece of gear.

Stockton's new mine plan required each piece of equipment to work 4200 hours in the year ahead, which required 348 operators.

"If we did that on 12-hour shifts we'd end up with just over 5200 hours a year worked, far more than we need or can afford. On a 10-hour roster, it works out at just over 4620 hours, which is close to our target (4200)," Mr Harrison said.

The alternative some people had suggested - fewer operators still working the old 12-hour shifts - would not work because it would mean the mine couldn't staff all the equipment.

He said other cost-cutting measures taken at Stockton included:

Reducing Downer EDI expat personnel on site;

Advertisement
Advertise with NZME.

reviewing the structure of teams to bring them in line with the tighter work plan. In many cases numbers were reducing and vacant posts were not being filled;

reducing the amount of travel and training for managers and supervisors;

cutting back on light vehicles;

cancelling upgrades to buildings and computer/IT systems.

"These current and proposed savings to date total over $32 million and have been incorporated already in our budget.

"These changes, across the site and top to bottom, are what's needed to get Stockton through this downturn and ensure it remains a viable operation," Mr Harrison said.

Advertisement
Advertise with NZME.

"I am convinced that these changes - including the need to reduce the shifts to 10 hours - are essential. If it is rejected, the future viability of the mine will be in question in the current market."

Save

    Share this article

Latest from Energy

Energy

Big four power firms near deal to secure Huntly's back-up role

18 Jun 10:57 PM
Premium
Energy

Why energy is set to be a hot topic in next year's election

15 Jun 02:00 AM
Premium
Energy

Israel-Iran attack: AA says petrol price panic pointless

13 Jun 04:46 AM

Anzor’s East Tāmaki hub speeds supply

sponsored
Advertisement
Advertise with NZME.

Latest from Energy

Big four power firms near deal to secure Huntly's back-up role

Big four power firms near deal to secure Huntly's back-up role

18 Jun 10:57 PM

New Zealand's big power generators want to offset dry-year risk.

Premium
Why energy is set to be a hot topic in next year's election

Why energy is set to be a hot topic in next year's election

15 Jun 02:00 AM
Premium
Israel-Iran attack: AA says petrol price panic pointless

Israel-Iran attack: AA says petrol price panic pointless

13 Jun 04:46 AM
Premium
Stock Takes: Why NZ's largest firms are suddenly ripe for takeover talks

Stock Takes: Why NZ's largest firms are suddenly ripe for takeover talks

12 Jun 09:00 PM
Kaibosh gets a clean-energy boost in the fight against food waste
sponsored

Kaibosh gets a clean-energy boost in the fight against food waste

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP