Solid Energy signs New Vale Coal deal

Solid Energy has signed a conditional deal to buy privately owned New Vale Coal in Southland.

The deal is subject to Commerce Commission clearance, which Solid Energy hopes to obtain by the end of October.

New Vale, a long-established family owned business, operates the New Vale Mine on the Waimumu lignite coal field near Gore.

The mine produces more than 200,000 tonnes a year, supplying local industry, including Fonterra's nearby Edendale Dairy factory.

Solid Energy plans to continue New Vale's mining operations and to retain the workforce of 30 people.