The Reddale open cast mine, which produced its first coal for the New Zealand market, is operated by contractor Doug Hood Mining.

It is aiming to produce a total of about 140,000 tonnes of coal over two to three years.

“This is an important milestone for the company. While Reddale is a small mine, it is the first new mine we have opened in many years,” Solid Energy opencast operations general manager Stephen Esposito said.

The coal from Reddale, northeast of Reefton, will help provide continuity of supply for Solid Energy’s industrial customers on the West Coast and upper South Island of New Zealand.

Reefton coal has long been valued for boilers because of its high reactivity and appropriate energy and ash.

The minesite is an area which has been mined in the past and the older mine-affected areas will be progressively remediated over the life of the mine.

All mining and remedial works are expected to be completed within five years.

Solid Energy fired mining and civil contractor Stracon at Ohai following a potential high-risk health and safety incident in which nobody was hurt but safety systems were seriously breached.

The operations at the mine were already under Solid Energy’s health and safety spotlight after the company temporarily shut down Stracon’s operations last December because of safety concerns triggered by a vehicle incident.

Solid Energy agreed to a restart of the contractor’s operations about four weeks ago, following a comprehensive safety review of site activities and all mobile plant and equipment but decided to act after another safety breach by the contractor.

Esposito said the new incident caused the company to lose confidence in the contractor’s ability to meet its health and safety expectations.