Solid Energy, which is being broken up and sold, has applied for consent to start a small mine near Reefton, allowing it to retain staff after slumping disrupted mining at the small Reddale open-cast.
The Greymouth Star reported a month ago that all operations had been pulled out of the bottom of the pit at the Reddale mine due to ongoing slumping.
The State-owned company has now applied to the West Coast Regional Council to start another small open-cast pit in the Peerless Valley, just east of the Reddale Mine area, 2km north-east of Reefton.
It wants to establish a 1ha pit to mine coal from an area adjacent to old open-cast and underground mine workings. Between 10,000 and 15,000 tonnes of coal would be mined.
The mine would be just east of Reddale Mine "where mining is to cease within the next few months", the application says.