Solid Energy Asset Sales

Solid Energy Asset Sales

Media Release

Solid Energy has announced it has signed a sale and purchase agreement for its residual mining assets in the Reefton area to Moore Mining Limited as part of its ongoing asset sales programme.

The list of assets includes the Reddale Mine, Banks Mine, Burkes Creek coal processing facility and the remainder of assets in the area. The completion of this sale, and the previously announced sales will complete the sale of all of Solid Energy’s domestic coal assets in the South Island and will allow continuity of supply to all contracted customers.

The next stage will be to commence the process of transferring Solid Energy’s mining permits over to Moore Mining Limited and managing the transition of the ownership and control of these assets to the new owners. This is expected to take some months with settlement expected to occur early in the second quarter of 2017.

Discussions are still ongoing with several parties regarding Spring Creek Mine and it is hoped to be able to reach a conclusion on the future of this mine soon.

Background:

In early November the company announced sales agreements with:

- Phoenix Coal Limited, a joint venture of Bathurst Resources and Talleys Group, for the Stockton export coal operation, and the two Waikato mines, Rotowaro and Maramarua, which supply for the domestic North Island market ;

- Greenbriar, owned by the Palmer MH Group, a privately owned South Island resources group - for the New Vale and Ohai coal mines in Southland;

- Birchfield Coal Mines Limited, a West Coast mining business, for the Strongman, Liverpool and Island Block mines on the West Coast.

The settlement dates of the transactions will vary depending on the required regulatory approvals and satisfaction of conditions, and are expected to be in the first half of 2017.

Further detail is available on www.solidenergy.co.nz

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