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Solid Energy And New Zealand Steel Sign Coal Supply Contract

Contributor:
Fuseworks Media
Fuseworks Media
Solid Energy And New Zealand Steel Sign Coal Supply Contract

20 November 2008 - Solid Energy New Zealand Ltd and New Zealand Steel Ltd have signed a new agreement for the supply of coal to the steelworks at Glenbrook, near Auckland.

"New Zealand Steel and Solid Energy have a long association and New Zealand Steel is a valued customer," says Barry Bragg, Chief Operating Officer for Solid Energy. "Concluding negotiations and securing the contract is very good news for Solid Energy and particularly the Huntly East Underground Mine. The coal will be supplied from both Rotowaro Mine and East Mine but it was very important to the future of East Mine to secure this contract."

"Once land and mineral access are secured, Solid Energy plans to invest more than $100 million developing and extending East Mine over the next five years. We continue to work closely with the various stakeholders to achieve this," Mr Bragg said.

"The major expenditure will be the construction of a mine ventilation shaft and the provision of mining equipment such as continuous miners, shuttle cars and conveyors. Securing the contract helps retain local jobs and allows Solid Energy to complete feasibility studies on new mines which would provide long-term secure coal supply to New Zealand Steel."

Over the course of the now concluded contract negotiations, Solid Energy sought and was granted resource consents from the Waikato District Council and Environment Waikato to extend the Huntly East Mine to the north. The mine extension is expected to add 10 to 15 years to its life and increase local employment from 145 to around 200 people. Solid Energy currently contributes approximately $115 million to the North Waikato economy through sales, employment and contracts with suppliers.

The new agreement runs for five years.

New Zealand Steel employs approximately 1400 people at the Glenbrook mill which was specifically designed to produce steel from the North Island's West Coast iron sands and Huntly coal.

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