Low coal price shuts New Zealand mine

The state-owned company said the South Island mine, which concentrates on exporting coking coal for the steel industry, was not economic given the weak outlook for world coal markets.

It said 220 staff at the mine would be made redundant but a 16-strong team would remain on site to carry out "care and maintenance" in the hope it can re-open if coal prices pick up.

"Solid Energy believes the mine still has potential if or when international markets strengthen for steel-grade coal," it said in a statement.

In a quarterly production report released last week, Solid Energy said the price it received for coal exports had plummeted to five-to-seven year lows, forcing it to reassess its long-term business strategy.

Source: AFP via I-Net Bridge.