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Solid Energy seeks large extension to Huntly East underground mine
10 March 2008 - Solid Energy is seeking consents for an $85 million expansion to the Huntly East underground coal mine in the Waikato to supply most of the coal to fire New Zealand Steel’s Glenbrook steel plant.
Solid Energy said it had sought consent from a combined Waikato District Council and Environment Waikato consents hearing to make a northern extension to its Huntly East mine to access 6 million tonnes of coal.
In a media release Solid Energy said the extension of the mine will add 10 to 15 years to its life and increase local employment from 146 to around 200 people.
The release said that New Zealand Steel’s vice president, Bob Pullein, speaking in support of Solid Energy’s application, 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.”
Solid Energy said that about 90% of the coal mined at the Huntly East Mine, along with coal from the company’s nearby Rotowaro opencast mine, is railed direct to the Glenbrook mill which was specially designed to produce steel from the North Island’s west coast iron sands and Huntly coal.
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 are assessing Solid Energy’s consent applications on a limited notification basis. The hearing decision will be announced later.
