THE chief financial operator of the Indian owner of the Griffin Coal Mine has told Indian media that the mine is nearly unviable.
In an interview with The New Indian Express, Mr T Adi Babu said Lanco Infratech’s Australian subsidiary, Lanco Resources Australia Pty Ltd., was unable to operate due to high labour costs.
“It’s [labour expenses are] shooting up our overall costs,” Mr Babu said.
Mr Babu added that in order to cut costs, Lanco was considering the “complete automisation of processes to undertake production”.
His comments are a more direct assessment of the company’s financial situation than what has been said to Australian media by the local subsidiary.
After contractor Carna Civil and Mining tore up its contract last month, Griffin released a press statement that said “we are doing all we can to protect all our futures”.
Mr Babu said the mine is focusing on meeting a short-term production target of five million tonnes by March.
The company is yet to find a strategic investor to help increase production.
“There’s investor interest but the timing is not conducive yet.
“We are talking to them [investors] but nothing has been finalised,” Mr Babu said.
