Coal deal to avert crises

Genesis and Solid Energy have released further details of a big coal deal agreed last month between the two state-owned enterprises.

Solid Energy will supply 11 million tonnes of coal to Genesis over the next eight years, with most coming from its mines at Huntly, but some may also come from its South Island mines.

Under the contract, Solid Energy will also increase the capacity of its conveyor system that takes coal to the Huntly Power Station, New Zealand's largest thermal electricity generator which can run on coal or gas.

The extra coal from Solid Energy does not remove the need for Genesis to import coal from Australia and Indonesia, the first shipment of which is due to arrive within weeks.

Genesis and its chief executive Murray Jackson have been criticised from many quarters, for not ensuring the Huntly station had enough coal to generate a full load of electricity through a dry winter.