Griffin faces new debt crisis
Troubled Collie coal miner Griffin has been thrown into fresh chaos after the contractor that runs the operation ordered workers off the job over another multimillion-dollar debt row.
For the second time in as many months, engineering group Carna Civil and Mining stopped production at Griffin yesterday over a bitter feud with the miner's Indian parent company Lanco Infratech.
The decision adds to pressure on Lanco, which is facing separate action by the Bureau of Meteorology to wind up Griffin after the miner allegedly failed to pay it about $45,000.
There are now serious concerns that Bluewaters, one of the biggest power stations in the south west electricity grid, could soon be forced to step in and take over.
It is believed Bluewaters' coal reserves have barely recovered since they were depleted during the last shut down in August and the company may have no other option to secure supply.
Under the terms of Bluewaters' agreement with Griffin, the generator is a secured creditor with rights to appoint a receiver to run the mine in the event supplies are threatened.
Bluewaters was tight-lipped yesterday. However, it is believed the "default level", which is triggered when its coal stockpiles dip below a set level, could be reached within days.
Griffin confirmed that production at the mine had been stopped yesterday, though it declined to elaborate on the nature of the dispute with Carna.
Lanco's purchase of Griffin in 2010 for $830 million was financed by a consortium of banks led by India's ICICI.
There were suggestions yesterday that disputed payments to Carna may have been held up because of complexities associated with the arrangements.
Collie Labor MP Mick Murray expressed exasperation with Lanco, saying it should sell Griffin if it could not pay its bills.
"If you can't pay your bills we don't want you to do damage to the State's reputation as well as the coal industry's reputation," Mr Murray said.
"Not only are business- es sick of it but so is people's confidence."
Energy Minister Mike Nahan said he was "closely" watching the situation but it was ultimately a matter for the two companies.
