Alerted new cuts – Dagsavisen

Alerted new cuts – Dagsavisen

Domestic

Low coal prices and costly production led to large Norwegian got a dramatic loss of 537 million before tax in 2014. Without fresh funds becomes impossible for the coal company in Svalbard to continue operations in 2015. Therefore delivered yesterday Executive Chairman Anita Malm Justad a loan application to own trade minister Monica Mæland (H). Here ask the state-owned company about NOK 400 million to finance further coal mining, and 50 million to develop new businesses in a new company that will be named Major Norwegian Development (SNU).

Should be slimmer

Before Christmas lost 90 employees work in the company and operational level was taken down to a minimum. The company is therefore expected to operate 300 million less in 2015. It will involve a cost reduction of 30 percent, and the cost will be further down.

Malm Justad therefore announced that more must be prepared to lose your job.

– The goal is that we can live with a coal price of $ 75 per ton, says chairman Dagsavisen.

That is part of the Great Norwegian Now carb costs they have no plans to put on weight again. Coal mining is still the most important industry sector in Longyearbyen, which also Malm Justad are conscious of.

– We are painfully aware that if we do not get this, it will get dramatically consequences, says the chairman.

SNU operation

That the Board ask for 50 million to build new businesses that will replace coal mining, watching local chairman of Longyear Triomphe Christin Kristoffersen as a wise strategy.

– You ask one for a loan to get the opportunity to develop a company. One does not ask for subsidies, says Kristoffersen.

The plan is also to sell more of its coal for industrial use, and less for electricity production. According Store Norwegian has the latest mine in Lunckefjell much coal that carries such a quality.

Case for Parliament

– We’re going to go through the proposal the board, but also watch options and information about the case as well as we can, and then conclude. We know that the situation is very serious, and this work will have top priority on our side, says Mæland Dagsavisen.

If this is a case she involving Parliament in, depends on whether the government will propose to allocate loan to Store Norwegian.

Head of nutrition committee at Parliament Geir Pollestad (Sp) believes Mæland should consider borrowing cost with a positive attitude.

– Coal mining is a key part of our policy for Svalbard says Pollestad who is concerned that industry minister quickly come to Parliament with a case.