Sacked company back working Rotowaro coalmine

Australian firm Henry Walker Eltin (HWE) is back on site at Solid Energy's Rotowaro opencast mine, near Huntly in the Waikato, despite the termination of its contract last week.

On Friday, Solid Energy said it had terminated its contract with HWE and intended to take over running the mine. But, in the meantime, HWE's voluntary administrator obtained an interim injunction on Friday night which allowed it back on site. HWE resumed production at the mine over the weekend.

Solid Energy's Vicky Blyth said issues relating to Solid Energy's termination notice were expected to be heard in court before Easter.

"We're hoping before Easter, but obviously that's up to the court."

Blyth said Solid Energy believed HWE had breached its contract by falling behind in the removal of overburden - material above the coal, such as rock.

Solid Energy had intended to take over running the mine through a new subsidiary called Waikato Contracting and Mining.

HWE has worked at Rotowaro since 1998 and, in February last year, signed a new seven-and-a-half year contract with Solid Energy. The contract covered the mining of overburden, the mining, washing and blending of coal and the environmental rehabilitation of the mine site.

Solid Energy supplies Huntly power station and NZ Steel at Glenbrook.

HWE was put into the hands of voluntary administrators in January.

- NZPA