Media Release

Resource Consents Lodged for New Opencast Mine in Buller

15 December 2003 Solid Energy New Zealand Ltd has lodged resource consent applications to develop and operate Cypress Opencast Mine, in the Upper Waimangaroa Mining Permit Area. The coal reserve is the future of mining in the Buller, as reserves at Solid Energy's nearby Stockton Opencast Mine will be mined out within 20 years.

Reserves in the Upper Waimangaroa, part of the Buller Coalfield, amount to more than 50 million tonnes of coal, which is particularly suitable for steel manufacture. The proposed Cypress Mine contains around nine million tonnes that can be economically accessed by opencast mining.

Around 105 hectares will be progressively mined and rehabilitated over the anticipated 10-year life of the mine. An overburden disposal area will be built, along with a haul road to access the site from Stockton Mine. Coal won at Cypress will be trucked to the Stockton coal handling facilities and transported off the Stockton Plateau to the Ngakawau rail terminal. The mine will cost an estimated $16 million to develop.

It is hoped to start coal winning at Cypress Mine in 2005. Mining will take place in conjunction with operations at Stockton Mine using existing staff, however it is anticipated that up to 30 additional jobs will be created both with Solid Energy and its mining contractor.

Solid Energy has applied for land use consents from the Buller District Council and for land use consents, water permits and discharge permits form the West Coast Regional Council. Solid Energy Project Manager, Mark Pizey comments: "Solid Energy has been pleased with the response from residents and interested parties, during our public consultation process earlier this year. Cypress Mine will provide employment and economic benefits locally and regionally. It will extend the benefits from Solid Energy's existing operations which significantly underpin the West Cost economy."

Solid Energy has undertaken a detailed and lengthy series of investigations in its planning for Cypress mine. This has ensured that, wherever possible, environmental effects have been avoided or minimised. The company is satisfied that its mine plan and rehabilitation proposals are practicable and that the proposed mine management system is designed to the best international standards.

For further information contact: Vicki Blyth Telephone: 03 353 0100 Communications Director Facsimile: 03 353 0116 Solid Energy New Zealand Ltd Mobile: 021 670 250