Solid Energy mines sold

(Supplied)
(Supplied)

The Government says the sale of Solid Energy's assets is the "best outcome" it could've hoped for.

Solid Energy announced today that it had reached an agreement on the sale of three mines on the West Coast, two mines in Waikato and two in Southland.

It includes the sale of Stockton mine in Westport to Phoenix Coal Limited, a joint venture between Bathurst Resources and Talley's Group.

Hundreds of jobs have been axed at the West Coast mine in recent years and Bill English says today's news will be a relief for the community.

"The West Coast has had to put up with four or five years of uncertainty about Stockton mine."

Falling international coal prices and high debts forced Solid Energy into voluntary administration in August 2015, when announced it would sell its assets.

"It's been a long story; a big company caught out by what was a savage drop in the coal price a number of years back," says Mr English.

A recent rise on the coal price has helped the sale process and made the outlook a little more positive.

Phoenix Coal Limited has also bought Rotowaro and Maramarua mines in Waikato, pending approval from the Overseas Investment Office because of the company's mix of international shareholders.

New Vale and Ohai coal mines in Southland have been bought by Palmer MH Group's Greenbriar, and Strongman and Liverpool mines were sold to Birchfield Coal Mines Limited; all New Zealand companies.

"It's a positive sale. There's four or five hundred people working in these mines; you've got buyers who, I'm advised, want to continue to operate them," says Bill English.

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