Media Release

Solid Energy to continue Terrace Underground Mine operations at least until mid-2009

24 September 2008

Solid Energy will continue to operate Terrace Underground Mine until at least mid-2009, with the likelihood of some further production if mining targets can be met and increased coal prices achieved.

Simon Doig, Solid Energy General Manager, South Operations, says the future of the company’s smallest mine, at Reefton on the West Coast, has been in doubt for some time and a number of mining plans have been analysed over the last year to determine if it could be profitable.

“The mine has been scaled back over the past year and will be operating with a single shift,” Mr Doig says.  “After reviewing a variety of mine plans and marketing options, we’ve decided that a limited amount of investment in development should be made to allow it to remain open until the end of June next year. 

“The mine’s prospects after that will depend on it hitting its production targets and achieving better returns for that production.”

Solid Energy also operates a distribution centre at Reefton which processes and ships coals from a variety of sources, including Terrace Underground Mine.  The mine and distribution centre currently employ 31 people.

Originally a private mine, Terrace was bought by Solid Energy’s predecessor, CoalCorp, in 1988.  It is producing approximately 40,000 tonnes of sub-bituminous coal a year for industrial and household markets in the upper South Island.