A frightened Western Australian coal mine that supplies one of the direct’s most engrossing energy stations has invoked a so-called Act of God clause to suspend operations, blaming a wetter-than-odd winter.
- Griffin Coal has invoked force majeure, citing wet winter
- The Indian-owned mine is reported to own lost $1b in a decade
- Griffin supplies one of the direct’s most engrossing energy stations
In a transfer the direct authorities labelled referring to, Indian-owned Griffin Coal has declared force majeure at its mine come Collie, about three hours’ pressure south of Perth.
The resolution is the most modern setback on the mine, which is believed to own lost extra than $1 billion since being taken over following the crumple of prone multi-millionaire Ric Stowe’s commercial empire in 2010.
Griffin’s trendy supervisor Joao Paulo da Silva Fernandes, in a veil to stakeholders, cited “a truly wet winter” for the suspension of coal deliveries to customers.
These embody Bluewaters, the 400MW energy establish of living whose price became once final year written down to zero by its Eastern owners amid the crumbling economics of coal-fired electricity know-how.
Not like the jap states, WA doesn’t export its coal, which is outmoded domestically for electricity know-how and industrial applications.
Firm explains resolution
Mr Fernandes acknowledged the firm became once within the hunt for safety as a final resort.
“As you is seemingly to be conscious, now we own had a truly wet winter, both in terms of total amount of water and in terms of cadence or consistency that this water has fallen,” Mr Fernandes wrote.
“For the rationale that starting of Could well unless the 20th of July, it has rained on 52 days, impacting the operations within the pit and leading to many days spent doing spruce-usaonly.
Insist ‘deeply intelligent’
WA Energy Minister Bill Johnston declined to be drawn on Griffin’s motives for the declaration but notorious that the neighbouring Premier Coal mine became once working in most cases.
Mr Johnston acknowledged the direct authorities became once “deeply intelligent” about the subject at Griffin, which he pointed out had been subject to operational difficulties for years.
“The authorities hasn’t been told how long Griffin expects to be out of operation but we could well perhaps hope that they are going to be in a space to own a transparent belief to salvage succor into manufacturing as rapidly as probably,” Mr Johnston acknowledged.
Even supposing no longer being a straight away customer of Griffin, the WA authorities is come what might exposed to the miner by its energy provider Synergy and water utility Water Corporation, which bewitch electricity from Bluewaters.
Despite this, and the scale of Bluewaters on the direct’s most engrossing grid, Mr Johnston acknowledged he became once assured the disruption to coal supplies would no longer own an label on taxpayers or consumers.
“The authorities has paid cautious consideration to any impacts on the electricity system and we’re very assured that now we own loads of electricity provide, even though Bluewaters became once to be disrupted by these fresh challenges,” he acknowledged.
Suspension raises eyebrows
Steve Thomas, an Greater Condominium Liberal MP from the South West space, acknowledged it became once no longer easy to effect Griffin’s resolution to bellow force majeure.
Dr Thomas notorious the period of time referred to unforeseeable circumstances and while winter in Collie had been rather wet the conditions were “some distance from indecent”.
He acknowledged the suspension appeared to highlight the “dire” financial establish of living of Griffin.
“It has been wetter than fresh years but it with out a doubt’s no longer a vastly wetter winter than now we own acknowledged within the previous within the South West space,” Dr Thomas acknowledged.
“It’s an dilapidated-usual wet winter.
Union seeks pay reassurance
Greg Busson, the district secretary of the Constructing, Forestry, Mining and Energy Union (CFMEU), acknowledged his most engrossing subject became once the welfare of Griffin’s workers.
He claimed team were paid out of the cashflow generated by coal sales and a suspension of deliveries rang “apprehension bells”.
“It’s a truly caring time,” Mr Busson acknowledged.
“Have they obtained the funds to bear determined of us’s entitlements?
“They’re the worries the participants own obtained.”