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The future of a West Coast coal mine employing 140 people has been secured by a US-based multinational company.
The Spring Creek Mine near Greymouth, New Zealand's second-largest underground mine, has closed twice in the past and has long been at risk of shutting down permanently.
But a new plan means it will now be run by majority owners, state-owned Solid Energy. A 49 per cent stake will be held by American-based firm Cargill, which employs 153,000 people in 66 countries.
Solid Energy said yesterday that Cargill's involvement had been cleared by the Overseas Investment Office.
Cargill will offer coal from the Spring Creek Mine to its customers around the world.
"This move creates a number of opportunities, and allows us to better serve our customers in Asia and elsewhere, offering them premium quality coal from this established mining operation," said Patrick Bracken, managing director of Cargill's coal business.
Solid Energy, told its Spring Creek mine staff yesterday that all agreements and required authorisations were now in place to ensure the mine's future.
Over the next three years, $25 million will be invested in new equipment in order to access three million tonnes of coal. When production resumes, around the end of the year, the mine is expected to produce about 65,000 tonnes of coal a month.
The Engineering Printing and Manufacturing Union represents many of the mine workers and has no issue with Cargill's involvement.
