Cargill Purchases 49-percent Shareholding in New Zealand Coal Mine

19/03/07 Cargill is to purchase a 49-percent stake in the Spring Creek Coal Mine from Solid Energy New Zealand. Located in Greymouth on the west coast of New Zealand’s South Island, this marks Cargill’s first investment in the country in recent years and brings an expanded and sustainable presence for Cargill’s coal business in the Asia Pacific region. The acquisition is subject to governmental and other approvals.

Solid Energy, owned by the New Zealand government but operating independently as a “state-owned enterprise“, retains a 51-percent shareholding and will continue to operate the mine. Cargill and Solid Energy intend to enter into a joint marketing agreement for the high quality coal produced from the Spring Creek operation, which is ideally suited to both the thermal and metallurgical markets.

Comments Patrick Bracken, managing director of Cargill’s coal business: “We’re delighted to be making our first steps in coal production with Solid Energy, a highly-respected operator. This move creates a number of opportunites and allows us to better serve our customers in Asia and elsewhere, offering them premium quality coal from this established mining operation.“

Barry Bragg, chief operating officer, Solid Energy New Zealand Ltd, says: “This tie up with Cargill represents a positive chapter in the development of the mine. Cargill will bring to the partnership its many years experience in global trading in each part of the energy complex, while Solid Energy brings long experience of operating Spring Creek and other underground mines. The synergies of the partnership are exceptional and will help us meet our expansion plans both on the ground and as we bring the product from Spring Creek to an increasing customer base.“