Solid, Downer form alliance

Solid Energy has signed an agreement with its new alliance partner, Downer EDI, the miner announced yesterday.

The Stockton Alliance officially takes effect on October 3.

Solid Energy also announced a further $75 million investment in Stockton Mine, bringing its total investment in the mine this year to about $200 million.

The alliance agreement was signed by Solid Energy chief executive Don Elder and Downer EDI Mining chief executive David Overall.

Elder said he was extremely pleased to confirm the deal had been struck.

The Stockton Alliance was a new, innovative approach to mining in New Zealand, he said.

The alliance would run for up to five years.

Solid Energy chief operating officer Barry Bragg said the alliance could now start making firm employment offers. They expected up to 650 workers to be employed directly or seconded from Solid Energy and Downer.

Overall said the company was delighted to be part of the alliance with a new client in a new market.

- NZPA