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Media Release

Solid Energy Welcomes go-ahead for Cypress Mine

26 May 2005

Solid Energy has welcomed a decision by the Environment Court to grant resource consents for the planned Cypress Opencast Mine, north ofWestport.

Solid Energy Chief Executive, Dr Don Elder, says: "This is good news for the company and for the Buller. As we have only just received the 130-page document this morning it will take some time to work through the details of the Court's decision."

"We stand by our commitment to develop and operate this new mine using environmental best practice and in particular to minimise the impacts of mining on the indigenous flora and fauna, particularly the Great Spotted Kiwi and the land snail powelliphanta 'patrickensis'.

"The Court has acknowledged our management plans for both the kiwi and the snail, accepting our proposal to create a predator proof reserve of some 17 hectares and an extensive predator control programme in a wider area.

"The Court has also accepted our proposal for the direct transfer of 12 hectares of red tussockland and its use in rehabilitation of the site at the end of mining, saying that this offer [by Solid Energy] "convinces us that the values on the rehabilitated site will in due course not be significantly devalued.

"It is also pleasing to see the Court's comment that we are taking a responsible approach to our operations on the Stockton Plateau."

Solid Energy will undertake extensive predator control around the mine site for a period of 30 years. Expert evidence presented to theEnvironment Court was that this predator control programme will enable kiwi and snail populations in the area to increase with an overall net conservation gain in the number of animals that will be present at the end of the 30-year programme.

Solid Energy expects to start developing the new mine later this year and for coal extraction to commence in late 2006. About 5 million tonnes of coal will be progressively mined at Cypress over approximately 10 years in two opencast pit covering 105 hectares. A further 155 hectares will be used for overburden disposal, roads, water treatment facilities and associated infrastructure. Vegetation and soils will be stockpiled at the start of mining for use in progressive rehabilitation of the site and for final rehabilitation and monitoring at the end of mine life.

The Environment Court heard appeals against the resource consents, granted in June 2004 by the Buller District and West Coast Regional Councils, from the Buller Conservation Group, Forest and Bird and Te Runanga O Ngati Waewae. The Department of Conservation and local group, Ngakawau Riverwatch settled their appeals, following agreements reached with Solid Energy and the Councils on their issues of concern.

For further information contact

Vicki Blyth,
Communications Director,
Solid Energy New Zealand Ltd,
Phone 03 345 6000,
Mobile 021 670 250,
Email vicki.blyth@solidenergy.co.nz