Solid Energy and Bathurst Resources Join Forces

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Solid Energy and Bathurst Resources to cooperate on Denniston export coal resources

Solid Energy and Bathurst Resources have agreed to collaborate as each business seeks to develop their export coal resources on the Denniston plateau north of Westport.

Solid Energy owns a number of high-quality coal resources on the plateau neighbouring those of Bathurst.

The coal is of similar quality to the highly valued steelmaking coals mined for Solid Energy by Stockton Alliance. Chief Operating Officer, Barry Bragg, says an agreement signed in Christchurch yesterday sets a basis for the companies to collectively work to unlock the value of those Denniston holdings.

The agreement provides for:

•Collaborative mine planning and designs on the Plateau where the two companies have common boundaries; •Coal transport agreement for up to 500,000 tonnes, or 25% of Buller Coal Limited’s (BCL) expected coal production via rail through to the Port of Lyttelton; •Both parties working together to identify and implement arrangements to enable them to have sufficient water available for their respective coal mining operations on the Denniston Plateau; •Solid Energy granting BCL the right to locate some of its facilities inside areas covered by Solid Energy’s coal mining licences on the Denniston Plateau; and •Solid Energy having access to BCL’s infrastructure, on appropriate commercial terms, to reduce unnecessary duplication of processing and coal transportation facilities.

“Working on these very valuable resources in collaboration will mean a better outcome for the community and national economy,” Mr Bragg says. “The companies will work together on designing, planning and ensuring infrastructure is optimised. As well, we have agreed to provide capacity for future Bathurst coal on the export transport chain through to the port at Lyttelton.”

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