Media Release

Closure for Wairaki No6 Underground Mine

22 August 2003

Coal production at Solid Energy's Wairaki No 6 Underground Mine, at Ohai in Southland, stopped last weekend after 22 years of operation. The mine was originally planned to cease production at the end of August, however following a deterioration in mining conditions, a decision was made to bring forward that date.

Coal winning has already begun at a replacement opencast mine at Ohai. Ohai Mining Ltd was appointed as the contractor for the opencast operation in February 2003. Up to 35 people are expected to be employed at the new opencast by the contractor, once operation is running to full production. 22 Solid Energy staff will manage, process and distribute the coal at the new opencast mine, and will join a team of technical staff to develop the opencast and any other future mining developments in the area.

Wairaki No 6 mine was officially opened in 1981, although work began in December 1980. Producing between 150,000 and 175,000 tonnes of coal per annum, Wairaki generated a final total of 2.74 million tonnes. Coal was extracted at Wairaki using a mechanised continuous miner. Coal from Ohai has one of the lowest sulphur contents in New Zealand, and customers include the dairy, cement, meat, and timber processing industries, which will now be serviced by the new opencast operation.

Solid Energy South General Manager Steve Riddell says: " The new opencast operation, and other future developments, will ensure Solid Energy maintains a considerable presence in the Southland community. Ohai has the potential to produce between 1 million and 4 million tonnes of coal in the short to medium term, enough to supply existing Ohai coal customers for 15 years at current forecasted sales. This coal will secure continuity of supply for Solid Energy's industrial and domestic customers in the lower South Island. It will also help to meet the projected increased demand for coal from South Island industrial customers, including the current and future needs of the dairy industry."

For further information contact:
Vicki Blyth,
Communications Director,
Solid Energy New Zealand Ltd,
Tel: 03 353 0100