The joint venture has begun operating following approval in May from the Overseas Investment Office.

Solid Energy holds the majority shareholding in the joint venture and continues as operator of the underground mine near Greymouth.

In March Solid Energy announced it had secured Cargill’s commitment, helping secure a long-term future for the mine provided it continues to meet development and production targets.

Solid Energy said all effort at Spring Creek Mine is currently devoted to development – upgrading and repositioning underground processing machinery, tunnelling to give access to more than 3 million tonnes of coal and upgrading the nearby washery to provide a low ash, low sulfur product for international thermal and steelmaking markets.

When production resumes, planned for around the end of the year, the mine is expected to produce around 65,000 tonnes a month (about 800,000tpa).

Over the next three years, the joint venture will invest $NZ25 million ($A22.26 million) in new equipment for the mine.

Solid Energy will market the mine’s coal in New Zealand and both parties will jointly market it into the international market. Export coal will be transported by rail to Lyttelton Port of Christchurch. Cargill will transport coal to its international customers using its ocean transport business.