Griffin miner ends contract

Collie coal miner Griffin Coal is endeavouring to hang onto its staff and satisfy its customer commitments after its main contractor Carna Civil & Mining walked off the site late yesterday.

Carna’s decision followed a series of disputes with Griffin, which is owned by heavily-indebted Indian company Lanco Infratech.

The Waroona-based contractor has previously halted work at the site on several occasions after Griffin fell behind in its payments.

Business News understands that Griffin intends to retain all of the 320-plus staff working at the mine.

It is also keen to maintain coal supplies to its customers, the largest of which is the privately owned Bluewaters power station.

One of the challenges facing Griffin, which produces 3.2 million tonnes of coal per year, will be replacing equipment that Carna is believed to have removed from the coal mine.

Lanco bought Griffin Coal three years ago for $760 million but is believed to be looking to sell the operation at an appropriate time.

The latest difficulties at Griffin come just a few weeks after the state government agreed to increase the price it pays to Collie’s second miner, Premier Coal.

Energy Minister Mike Nahan announced last month that government utility Synergy would pay more for its coal supplies, but with the terms of the agreement to remain confidential between the parties.

The new prices follow an agreement struck in 2005, which resulted in Premier becoming the sole coal supplier to the government.

Premier, which has been owned by China-backed Yancoal Australia since 2011, employs about 300 people and produces about 4 million tonnes per year.

Yancoal paid $297 million when it bought Premier Coal from Wesfarmers.