Ports and Transport

Within New Zealand coal is carried from Solid Energy mine sites to our major customers for the most part by rail, with smaller volumes delivered by road. In the Waikato, coal is railed directly from Solid Energy's Huntly East Underground and Rotowaro Opencast Mines to New Zealand Steel's Glenbrook Mill and from Rotowaro to Genesis Power Ltd's Huntly Power Station. Coal from mines on the West Coast is transported by rail to the Port of Lyttelton near Christchurch for export.

In mid 2002 Solid Energy signed a 15-year agreement with the Port of Lyttelton, which will see coal-handling facilities upgraded at the port. These will include improved coal train receival facilities, a more efficient and flexible stockpile layout and ship loading capability increased from 18,000 to 25,000 tonnes a day. To supplement Lyttelton's capacity Solid Energy is exploring the potential for coal exports through Shakespeare Bay, near Picton. We are also reviewing the opportunity for resuming a dedicated and regular barging operation between Westport and Port Kembla in Australia, as well as other barging opportunities to destinations around New Zealand.