State Owned Enterprises Minister Tony Ryall has acknowledged the service of John Palmer, ONZM, retiring chair of Solid Energy New Zealand Limited.

"Mr Palmer is one of New Zealand's foremost company directors and chairs", Mr Ryall says, "Both governments have been lucky to have a chairman of his calibre serving in this important role."

Mr Palmer has announced he is retiring from the board, to focus on other commitments and enable a new chair to be appointed to lead the company through the expected Initial Public Offer (IPO) process.

"While it is disappointing to lose such a senior director, I wish to recognise Mr Palmer's commitment to the company since his appointment in 2006, and the developments the company has made under his leadership," Mr Ryall says.

A process will begin to identify a replacement chair at Solid Energy.