Media Release

Ohai coal on sale in the South

6 November 2007

Solid Energy has confirmed today that it plans to continue supplying Ohai coal to retail and industrial markets until at least the winter of 2010.

Bulk stripping (of the material above the coal) by contractor, Ohai Mining Ltd, finished at Ohai Opencast Mine at the end of last week.  Solid Energy will run a smaller-scale mining operation mining, selling coal to industrial customers and into the bagged coal retail market until winter 2010.  The company is investigating whether there is an opportunity to produce enough coal to continue to supply the bagged coal market in Otago and Southland until the end of winter 2011.

Solid Energy expects to finalise its operational and staffing plans for the mine over the coming year, based on the mine’s expected economic life and the company’s ability to supply customers.  Solid Energy currently employs 16 coal processing and administration staff at the mine.

Bagged coal for retail customers is available through Gibbs Coal, John Murray Coal and Parklands of Invercargill and Alistair McCann and Designer Trees Ltd of Dunedin.  Trailer purchases of coal are also available from the mine gate.