Solid Energy (SE) has confirmed 70 contract workers have lost their jobs at Buller's Stockton mine under the company's new alliance with Australian company Downer EDI.
Solid Energy spokesman Bryn Somerville said today those laid off were drivers employed by Doug Hood Mining.
"We have had a substantial drop-off in the demand and price of our coal.
"We are wanting to start lean to ensure that the mine is as efficient as we can make it."
He said the majority of contract workers, about 500 in total, had been rehired.
Mr Somerville dismissed rumours that Downer would be bringing in Australian contractors.
He acknowledged that the drivers who lost their jobs were now in a stressful position. "We really do feel for these people."
Mr Somerville apologised to workers who did not find out they had lost their jobs until they arrived for work on Monday.
"We put letters in the mail late last week. It looks like the majority of people had heard before they came to work, but it's true there were some that hadn't. We apologise for that. SE should have mailed the letters earlier."
Mr Somerville said the new alliance would come into force on October 3, the mine starting with about 600 workers - down 150 on the total at the end of last year.
"Basically what we are doing is starting with a minimum crew required to meet our targets and it may be that we will be light in a couple of areas
"It is possible we will need additional staff."
The alliance would rather start with a smaller workforce rather than find out later it had miscalculated and had to go under.
A driver, who declined to be named, said the Engineering Manufacturing and Printing Union (EMPU) would meet workers tomorrow.
The Westport News said today it understood that a protest strike may be planned at the mine for Monday.
