Media Release
Expansion for Reefton's Terrace Mine
2 July 2003
A $4.8 million upgrade and expansion of Solid Energy's Terrace Mine at Reefton will secure a supply of thermal coal for South Island industrial customers over the next ten years.
Coal producer, Solid Energy New Zealand Ltd, has started an underground development programme that will open up 1 million tonnes of economically accessible reserves, increasing annual production from 65,000 to 100,000 tonnes by late 2005. Terrace's workforce of 17 permanent full time employees will increase by two thirds, with up to 10 new jobs currently being recruited at the mine, including opportunities for three trainee mineworkers.
Solid Energy South General Manager, Steve Riddell, comments: "This development and expansion programme at Terrace will secure an ongoing supply of coal for our industrial customers in the Upper South Island, Canterbury and South Canterbury. It underlines Solid Energy's long association with and long-term commitment to the township of Reefton and will maintain our significant contribution to the local economy, particularly through the purchase of goods and services."
Solid Energy has also commenced investigations into extending this development into other areas of Terrace Mine to secure coal supply for well beyond 20 years.
The current development programme will see the replacement of the surface infrastructure at Terrace Mine to increase the coal-handling capacity and will include enhanced environmental management systems and site landscaping. This work is due to start in September and the new plant to be commissioned in May 2004.
The mine's screening plant has exceeded its design capacity of 25,000 tonnes per annum and will be significantly upgraded to meet increased volumes. Settling ponds used in the screening process for treating water will be replaced by a mechanised process that separates out and dries the coal fines (very small particle of coal) for removal off site. A clarifier to treat water used in mining operations was installed and commissioned in December 2002.
Steve Riddell adds: "We're really pleased that as part of our expansion plans for the underground mine, we can make some big improvements in the site's environmental systems and standards and greatly enhance the visual appearance of the site for the local community."
Coal from Terrace Mine is currently blended with coal from Solid Energy's Strongman 2 Underground Mine and Francis Mining's Echo Opencast Mine at Garvey Creek and sold into industrial thermal markets. Both Strongman 2 and Echo mines have reached the end of their economic lives.
Terrace coal will be blended with coal from Strongman 2's successor, Spring Creek Underground Mine (near Greymouth) to create a high-grade industrial blend for customers.
Terrace Mine has a long history as a private mine dating back to the early 1900s before it was purchased by Solid Energy in 1988. Coal is extracted at Terrace by hydro mining using low-pressure monitors. Water carries the coal along the mine floor to a holding pen where it is pumped to the surface to the screening plant. To date development has been by drilling and blasting, but the new reserve will be opened up using a mechanised road header.
For further information contact:
Vicki Blyth,
Communications Director,
Solid Energy New Zealand Ltd,
Tel: 03 353 0100,
Fax: 03 353 0116.
