The loss compared to a 2008 second-half profit of $NZ78.4 million.

Solid attributed the majority of the fall to the drop in hard coking coal prices and the global economic downturn. The balance was largely attributable to five weeks of industrial action at the company’s main coal mining sites late last year.

Revenue for the half-year was $257 million, less than half that for the same period last year. The rising New Zealand dollar against the US dollar offset some of the loss.

Coal sales were down 20% to 1.68 million tonnes mainly due to the industrial action.

Export coal sales were down to 670,000 tonnes compared to 980,000t in 2008. Domestic sales were also down.

Solid Energy chairman John Palmer said during the past few months the company had been working with international coal customers to manage the supply shortages following the industrial action while planning for increasing production for 2011.

“International coal prices have risen since the benchmark prices were agreed for 2009-2010. Benchmark and spot prices for 2010-11 are currently forecast to be above previously projected levels, but it is still too early to forecast likely prices accurately,” he said.

Palmer said major capital expenditure, particularly at underground mines, had been placed on hold.