Solid Energy sells final Reefton assets

  • 08/08/2017
The company entered voluntary administration in 2015 after directors concluded there was no way of refinancing significant debt.
The company entered voluntary administration in 2015 after directors concluded there was no way of refinancing significant debt.

Mining company Solid Energy has announced the sale of its remaining assets in Reefton, severing a 28-year relationship with the area.

The company entered voluntary administration in 2015 after directors concluded there was no way of refinancing significant debt, and has been selling off assets since.

Spring Creek, north of Greymouth, is the only mine left in Solid Energy's portfolio and after a buyer could not be found, its closure is under way.

Solid Energy purchased the Pike River Mine near Greymouth in 2012 and planned to re-enter the mine, where 29 men died in 2010, but backed out of the plan in 2014 due to safety reasons.

The sale of Reddale and Burkes Creek mining operations near Reefton, to Moore Mining Ltd, was confirmed on Tuesday, and ends Solid Energy's operations near the town which began in 1989.

Two weeks ago BT Mining Limited gained approval for the purchase of Solid Energy's North Island and Stockton assets. This transaction is expected to settle at the end of August, says Solid Energy chief executive Tony King.

"With that sale, we will be progressively completing remaining operational and administrative activities by December 2017, prior to the company going into solvent liquidation by March 2018," he said.

NZN