28 Feb 2015

Solid Energy delays half-year results

3:13 pm on 28 February 2015

The Government has warned Solid Energy it is not prepared to expose taxpayers to ongoing losses indefinitely.

The troubled state-owned coal company announced yesterday it would delay the release of its half-year results because of its precarious financial position.

On the same day, a group of lenders co-opted into the Government bailout of the company two years ago announced it had written off its remaining $54 million debt exposure.

Solid Energy's chief executive Dan Clifford said the company was moving early on the face of poor outlook for international coal prices.

He said solid energy had slashed production costs by 30 percent in the last 18 months but more structural changes were needed.

Last year the company cut 185 staff and contractor jobs at Stockton Mine on the West Coast, a third of its workforce.

State Services Minister Todd McClay said as long as there was a reasonable chance Solid Energy could return to profitability, the Government would continue to do what it could to support it.

He confirmed the Government indemnified the company's directors last year.

He said the terms were confidential but were not related to Solid Energy's solvency.