Trouble for Griffin Coal Mine as Lanco plans sale

Debts continue to accumulate at the Griffin Coal Mine, as owners Lanco Infratech plan to sell a stake in the project.

With failed cost cutting measures and two instances of industrial action over the past three months,  Lanco Infratech have said discussions were underway with “some strategic/financial investors”," according to the ABC.

Lanco Infratech debt stood at $US5.9 billion in March this year, and the company said last month it would sell power projects to raise $825 million.

Contractor Carna Civil and Mining has stood down staff at the mine twice over Lanco Infratech’s failure to pay an outstanding debt of several million dollars.

Local member for Collie-Preston Mick Murray has said the mine is unsustainable at current coal prices.

“You know with overheads… the losses continue so it's quite obvious now it's just they've decided to cut their losses and put it on the market,” he said.

“If they keep going, it's pointless, the mine will go broke; they are pouring in money every month and not making anything.”

Murray said the company was the major employer in the region, and that Lanco Infratech owed the community some explanation of their current situation.

“It's incumbent they make some public statements for the community of Collie and certainly the Great South West,” Murray said.

The Griffin mine is the primary source of coal for the Bluewater power station, which supplies energy for WA’s southwest, as well as 15 per cent of the state’s overall supply.

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