Solid Energy yesterday announced it had reached agreement for the sale of its key mining assets with outcomes expected to be in excess of forecast.
Solid Energy entered voluntary administration in August last year after the directors concluded the company had no realistic prospect of refinancing significant debt.
The Crown supported the sales process by agreeing the environmental indemnity funding at present available to Solid Energy would also be available to any new owner.
No figures were provided by any party and Finance Minister Bill English said the condition of two sales were they were confidential.
State Owned Enterprises Minister Todd McClay said Solid Energy's remaining creditors - primarily banks - were expected to receive about half of what they were owed.
The Bathurst-Talley's joint venture has Bathurst holding 65% of the Stockton and Waikato assets and Talley's holding 35%.
Bathurst's operations at present include the Takitumu mine in Southland and the Canterbury Coal mine. The company also owns significant coking coal resources on the West Coast, including the Escarpment and Cascade mines adjacent to the Stockton operations.
Bathurst chief executive Richard Tacon said the purchase through the joint venture would create a new larger company with long-life assets and a mix of both domestic and export sales revenue.
Combining the Solid Energy assets with the existing Bathurst mines would create the country's largest specialist coal-mining company, sharing knowledge and resources, and providing economies of scale to create a strong foundation for a long-term business.
Palmer MH Group, a Dunedin company controlled by Hunter Brothers (Craig and Tony Hunter) and McMahon Investments (Jennifer Anne McMahon and Sean Martin McMahon) have bought the New Vale and Ohai coal mines in Southland.
Birchfield Coal Mines has signed agreements for the West Coast Strongman and Liverpool mines. Birchfield lists Alan John Birchfield and Evan Raymond Birchfield as directors.
Mr English said the sale of the mines as going concerns was a positive development.
``It means they will continue to provide jobs and contribute to regional economies. That is not something we could be sure of 18 months ago.''
Falling international coal prices and high debts forced Solid Energy into voluntary administration in August last year. Shortly afterwards, Solid Energy's major creditors effectively took control of the company when arrangements were entered into, facilitating the sale of its assets. Those arrangements provided for payment in full to employees and trade creditors.
Mr McClay said as part of the sales process, the Crown had agreed to take over responsibility for long-term rehabilitation obligations associated with acid mine drainage from the Stockton plateau. Current estimates were the work would cost $36 million on top of earlier commitments. The Crown had previously extended its indemnity for pre-1987 historical rehabilitation obligations to cover the period between 1987 and 2014 at a cost of $103million.
Incoming Solid Energy chief executive Tony King said staff had been kept informed as much as possible throughout the sales process and there had been significant management focus on finding employment opportunities for staff throughout the sales process.
A majority of staff were expected to be employed by the new owners, he said.
