Solid Energy, New Zealand

QME 2008 Profile

Name of Delegate and Position	Andrew Melville, National Procurement Manager Solid Energy www.coalnz.com
Brief description of company	Solid Energy, a state owned enterprise, is the country’s biggest coal company. Solid Energy extracts, processes, markets and distributes more than 4 million tonnes of coal a year from its seven underground and opencast mines around Huntly in the Waikato, Greymouth, Westport and Reefton on the West Coast and Ohai in Southland. They has been instrumental in rapid industry developments over the last 10 years lifting exports in coal from almost nil to over 1 million tonnes a year in response to global demand. Solid Energy’s sub-bituminous (steaming) coal produced from the West Coast have a low ash and sulphur content, making them an attractive environmentally friendly energy source. Outside of rigorous environmental constraints that effect mining industry operations within New Zealand, the mountainous and undulating land typical to the country contains many volcanic faults which cause highly unpredictable and varied rock/coal formations. Coal seams are distorted bringing many new variables to mine planning that aren’t typically seen in most other coal mining operations globally. A familiar comment we heard was that ‘the environment is constantly changing’. Product and service providers need to familiarise themselves with these unique characteristics that affect this market. New Zealand mine managers and maintenance managers have emphasised that Australian companies need to be willing to customise their products/services if necessary and in many cases this is what will be required. Although orders will be of a smaller size, the industry is loyal to companies that show they are innovative and able to meet the challenges the industry faces. They value a consultative and problem-solving approach instead of a prescriptive attitude which they often face from companies coming to do business in the NZ market.
Specific interest at QME	Solid Energy are seeking mining equipment, and services that will increase efficiencies throughout their undergound and open cut mines. In particular Stockton mine has plans to spend up to $1billion on plans for a washery to be finished in 2009.