Solid Energy expresses view of Pike River development

Monday 14th March 2011

State-owned coal miner Solid Energy believes the Pike River coal mine can only be developed by a long-term integration of underground and opencast mining.

The country's biggest coal miner went public at the weekend about its interest in the mine after receivers PricewaterhouseCoopers said last week that the mine was for sale and there had already been interest in it.

The receivers took over the mine from police last week, nearly four months after 29 workers were entombed when an explosion ripped through the newly-developed underground mine, high in the Paparoa Range, about 50km northeast of Greymouth.

Solid Energy has said very little since the mine disaster but today it published a lengthy statement stating its mining credentials, confirming its interest in the Pike River coal field, and discussing the huge geological challenges of the mine. It operates the Spring Creek mine "just down the road".

Pike River was an underground mine and there has been speculation that the mine could become opencast even though it was developed on Department of Conservation administered land.

If the value of the Pike River coal resource was ever to be realised, it would only be through a very carefully planned and developed long-term integration of underground and opencast mining, Solid Energy chief executive Don Elder said.

Anything other than this would risk sterilising a significant part of this valuable coal resource.

"There are many very good underground mine operators around the world, including some with experience in exceptionally difficult conditions. But this is not a relatively straightforward small operation that can move to production fairly quickly.

"Neither would it be acceptable for the West Coast, or New Zealand, for someone to come in and strip out the quickest easiest coal - if there is any - by either opencast or underground mining," Dr Elder said.

New Zealand was one of the most geologically, geographically and environmentally challenging environments in the world. The West Coast was the most difficult coal mining environment in New Zealand, by far, he said.

"We've spent the last 110 years learning that, often the hard way. Our current operating mines at Spring Creek just down the road, and Stockton to the north, have 60 years' experience in this geological environment, yet we're still being hit with surprises and learning hard lessons every day."

Dr Elder said that even if opencast mining was allowed at Pike River it would be among the most difficult and challenging opencast operations anywhere in the world considering the resource, access, infrastructure and the absolute requirement above all to do it safely.

"The area best suited for opencast mining is likely to be the area of the coal resource about which least is known and which presents most risks -- geologically, geographically and environmentally. Parts of the resource might be mined underground but we have major reservations about suggestions that the existing underground mine operations could simply continue with some changes," he said.

At the weekend he told the Greymouth Star it was imperative the asset remained in the control of New Zealanders.

"Our great concern is that the resource will end up in the hands of an overseas company that has great aspirations but lacks the knowledge, expertise and understanding to get it right."

NZPA

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