Solid Energy wins in Chile

Solid Energy is one of the winners from the free trade agreement struck with Chile.

Prime Minister Helen Clark on Friday announced a free-trade tie-up between New Zealand, Chile, Singapore and Brunei at the Apec Trade Ministers meeting in Korea.

The state-owned coal producer said the tie-up between Chile and New Zealand would include a lifting of tariffs on Kiwi coal imports to the South American nation.

Marketing manager Malcolm Roberts said the tariff removal would mean a 5 per cent to 6 per cent margin increase, meaning Solid Energy could be more competitive in the face of stiff competition from Australia and Indonesia - both of which enjoyed bigger economies of scale.

The coal producer exports up to 200,000 tonnes of coal to Chile each year, accounting for about 6 per cent of its total annual international sales.

- NZPA