Mayor sad for Ohai and its residents

Southland District Council Mayor Frana Cardno is saddened but not surprised by the news Solid Energy is closing its Ohai mine at the end of June.

“We have known for some time the mine was possibly going to close but had hoped that Solid Energy would win other contracts which would allow it to keep the mine with its excellent coal quality open.

“This would have been the best outcome for the workers and their families,” Mrs Cardno said.
“I am devastated for the community.”

However, Mrs Cardno said Solid Energy management had said they were hoping the closure would be temporary. If new substantial contracts could be won, the mine could be reopened.

Most of the 13 mine workers will be made redundant, with only a small number retained to rehabilitate the site. Solid Energy is trying to find jobs at other sites for the Ohai staff.

Accessible coal reserves at the mine site have been dwindling and Solid Energy had previously said the mine would be possibly closed by the end of 2009. Solid Energy told Mrs Cardno there were still 1.5 million tonnes of coal in the mine, but the costs were huge to get it out.

“It is a sad time for the community and for all of Southland as coal mining in Ohai has been part of our history and our economy,” she said.

Mrs Cardno is also concerned for the associated industries and businesses which provide services to the mine as the closure will impact on them.

Another issue surrounds the use of Ohai coal for home use as many Southland families use coal to heat their homes. Other suppliers will be able to provide coal, but the Ohai mine has also supported a number of important community facilities, such as the Ohai swimming pool.

“We hope that another economical provider will fill the gap,” she said.

“It’s a tough year worldwide but I know Southlanders are resilient and Ohai residents are strong,” Mrs Cardno said.

“However, this news couldn’t have come at a worse time and our hearts go out to those affected. Council will put resources into trying to identify other options which will ensure the economic viability of the Ohai area is sustained.”

She is also hopeful that proposals to mine some of the vast energy resources Southland has will come to fruition soon.

Solid Energy had announced in March 2007 it was downsizing the opencast mine after losing a major contract with Fonterra to supply its Clandeboye plant. The mine had produced about 200,000 tonnes for the South Island industrial and bagged coal market.

At that time Solid Energy said it was likely, depending on coal reserves, the mine would be closed between the end of 2009 and the end of 2012.