Soaring world prices boost for Solid Energy

Soaring world coal prices have put state-owned Solid Energy on track for a bumper 2005/2006 financial year.

The Press newspaper reports that new contract prices for coking coal have leapt from US$57 ($79) a tonne to US$125 a tonne.

Chief operating officer Barry Braggs said they were the best prices for about 25 years.

The company's export volumes would rise from 2.2 million tonnes to 2.7 million tonnes in the coming year, but demand was outstripping supply by two to three times.

Braggs said the company planned to reinvest as much as possible in the business.

Solid Energy has earmarked about $80 million for capital expenditure.

The new Cypress Mine in the Buller district is expected to open within 18 months, but the granting of its resource consent has been appealed in the Environment Court.

For the year ended last June, Solid Energy posted a net profit of $33.7 million, down from $56 million the previous year.

Meanwhile, Solid Energy's recruitment drive for skilled British miners has had a positive response.

Two weeks after advertising in Britain, the company had fielded 270 inquiries, which so far has resulted in 77 applications.

Solid Energy is looking for workers for its Spring Creek underground coal mine near Greymouth.

The mine has about 130 workers and an average monthly production of 66,000 tonnes, much of it for export.

Solid Energy began advertising in Britain - apparently to take advantage of UK Coal's decision to close its Ellington Colliery in Northumberland because of flooding. It sought mine workers, face workers, development operators and electricians.

Solid Energy said it was not turning its back on New Zealanders, but it needed skilled miners quickly.

It could not afford the years of work and training needed to bring inexperienced workers up to scratch.

- NZPA