The Prime Minister's indicating liquidation of state owned mining company Solid Energy is a possibility.

He's confirmed discussions over the financially troubled company's future are at a delicate stage and that announcements on its future are likely in the next few weeks.

John Key said a total sale of the entire asset, as we currently know it, isn't something that's being actively considered.

"There are preferred options and there are less preferred options. The less preferred is liquidation but I can rule out that happening in future."

Workers are hoping that when the time comes, the government will save Solid Energy from liquidation.

EPMU assistant national secretary Ged O'Connell said there could be up to 1500 workers who lose out if it comes to that.

He says even now their futures are uncertain.

"Those communities that they live in, a lot of empty houses, a lot of difficult forecasts for the future."

"This sort of situation doesn't help."

Mr O'Connell hopes when the time comes the government will participate.

"The disaster happened on their watch. And it's not a bad investment if you compare it to a flag or something like that."