Solid Energy secures Ikamatua rail load-out sub-lease

Solid Energy secures sub-lease of rail load-out facility at Ikamatua

Solid Energy will take a sub-lease of the coal stockpile and rail load-out facility at Ikamatua which was developed by Pike River Coal (in receivership).

In a judgment last week, the High Court in Wellington granted an application by the Pike River receivers to reinstate leases the company had for the land the facility is built on. That had the effect of cancelling lease arrangements the landowners had made with Solid Energy after Pike River Coal went into receivership.

However, the judgment also requires the receivers to sub-lease the land and the stockpile and load-out facility to Solid Energy for two years and Solid Energy has today confirmed to the receivers that it will do so.

Barry Bragg, Solid Energy’s Chief Operating Officer, says the decision is even-handed. “We are satisfied with the judgment,” he says. “We made lease arrangements with the landowners because we believe the Ikamatua facility will add value to our current and planned export coal operations. Having this two-year lease will allow us to include the facility in our future plans. Our objective is still to secure the lease for the full 25 years.”

Mr Bragg says Solid Energy absolutely rejects allegations about its conduct made to the court by the receivers. “The court’s decision makes no findings on those allegations and allows Solid Energy exclusive use of the facility for two years,” he says.

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