Media Release
Solid Energy seeks extension to Huntly East Underground Mine
30 January 2008
An extension to Solid Energy’s Huntly East Underground Mine is vital to the future of the Glenbrook steel plant, a combined Waikato District Council and Environment Waikato consents hearing was told today.
Solid Energy is seeking consents to extend Huntly East Mine to the North to access 6 million tonnes of coal. The natural extension of the mine will add 10 to 15 years to its life and increase local employment from 146 to around 200 people.
Speaking in support of Solid Energy’s application, New Zealand Steel’s Vice President, Bob Pullein, told the hearing: “Although the substitution of Indonesian for Waikato coal is potentially possible, it would expose New Zealand Steel to cost, exchange rate, transport and quality risks that would bring into question the viability of continuing to manufacture iron and steel from ironsand in New Zealand.”
About 90% of the coal mined at the Huntly East Mine, along with coal from Solid Energy’s nearby Rotowaro Opencast Mine, is railed direct to New Zealand Steel’s Glenbrook plant which was specially designed to produce steel from the North Island’s West Coast iron sands and Huntly coal.
New Zealand Steel represents more than 0.5% of New Zealand’s GDP and contributes over NZ$2 billion directly and indirectly to the New Zealand economy.”
Huntly East Mine’s entries and surface facilities are on the east side of the Waikato River. All current mine development and coal extraction takes place on the west side. It has been operating since 1977. In extending the mine Solid Energy has applied for consents to take water and build a ventilation shaft at Okowhao on the western side of the Waikato River at Huntly. A change to an existing water discharge permit is also being sought.
Solid Energy currently contributes approximately $115million to the North Waikato economy through sales, employment and contracts with suppliers. Solid Energy is planning to spend $85 million over five years to support the extension of the Huntly East Mine. The major expenditure is the construction of the shaft and the provision of mining equipment such as continuous miners, shuttle cars and conveyors.
The Waikato District Council and Environment Waikato assessed Solid Energy’s consent applications on a limited notification basis. This means directly affected parties, including iwi, have been notified as part of the process. The hearing is scheduled to take place from 30 – 31 January 2008.
