Company chief Barry Bragg said the mine, near Greymouth, had a “positive start”. The mine has been idle since November 2004 after slow development rates, coal quality issues and the risk of spontaneous combustion related to high gas levels closed the mine down.

Under a six-month mine plan approved through to the end of February 2006, coal will be extracted by hydraulic monitor in panel one, which has been under development.

In the meantime, Solid Energy’s technical team has started developing a further 12-month mine plan for development and extraction through to the end of February 2007.

“Progress will continue to be regularly measured against the development and production targets set out in the mine plan to ensure the operation is sustainable and that it has a long term future. If targets are not consistently met the future of the mine will be reviewed. The economics of the mine remain marginal,” Bragg said.

Prior to the restart of extraction, the major technical issue facing the mine had been upgrading the main ventilation fans. Replacement blades for the fans were made in Australia and installed at the beginning of last week with assistance from New Zealand company Gray Brothers.