"Our first control failed but we had other controls in place to ensure our staff were safe and we're comfortable about that, but we're running investigations about why the first control failed.''
However, he acknowledged there were "gaps'' in the mine's management and reporting systems, as identified in a mine safety audit year.
"We're not happy about that but we're moving to fix them.''
Bragg said that the generator never actually caught fire, as the department reported.
"It wasn't a fire underground, it was surface compressor that overheated and led to a lot of smoke and some of that smoke got into our air compression system and that's what the mine inspector was referring to. We have multiple controls in place to manage that event and we believe we managed it correctly.''
Solid Energy is expected to meet the department later today.
The Department said the prohibition notice would be lifted only when Solid Energy had provided an explanation of the events; a thorough investigation has been carried out; and engineering controls and management systems have been changed to prevent further issues.
Spring Creek employs about 230 mineworkers, tradespeople and professional specialists, with about 40 people working underground at any given time.
Last week the Department of Labour closed down a Coromandel Peninsula gold mine for failing to comply with mining regulations.
Broken Hills, a small underground gold mine operating on conservation land near Puketui, was closed after failing to meet an improvement notice.