The future of the recently completed $29 million lignite-to-briquette plant has been uncertain since March, when Solid Energy chairman Mark Ford said it was a non-core asset Solid Energy was likely to be exiting.
That statement came after the Government revealed it was providing financial support to the state-owned mining company as it struggled under a $389 million debt.
Solid Energy spokesman Bryn Somerville said an announcement about the briquetting plant's future was expected to be made today.
The state-owned enterprise and Australian-based GTL Energy had ''talks'' on Monday night about where to go and what to do.
Just how the announcement might affect the eight staff employed at the pilot plant is unclear.
GTLE Development, a joint enterprise between Solid Energy and GTL Energy, was to run the briquetting plant when it was fully commissioned.
The Otago Daily Times understands that at the time it was agreed the New Zealand-owned subsidiary would lease and run the plant, trial the briquettes in international markets and develop and deploy the technology worldwide.
The briquetting process removes the high amount of moisture in lignite to make briquettes, which burn hotter and cleaner to produce more energy.
The pilot briquetting plant on Craig Rd, south of Mataura, was the first of three projects planned by Solid Energy for lignite from the Waimumu, Croydon and Mataura areas.
