It is reported that state owned miner Solid Energy is developing a small opencast mine near Reefton for larger industrial customers.

Solid Energy will begin supplying coal to the company's industrial customers on the West Coast and upper South Island in early 2012.

Contractor Doug Hood Mining Ltd has been named as preferred contractor for the Reddale Mine operation and expects to start mobilization towards that as soon as the contract is finalized.

The miner estimates the standard truck-and-shovel opencast mining operation will provide at least six new jobs.

Reddale Mine, being developed in a valley north-east of the Reefton township, will produce a total of about 140,000 tonnes of coal over two to three years. That mine size is relatively small compared to others in Solid Energy overall portfolio of mines.

Mr Stephen Esposito Solid Energy recently appointed general manager opencast operations says Reddale production will mean continuity of supply to Solid Energy's customers. He said that ''Reefton coal has long been valued for boilers because of its high reactivity and appropriate energy and ash.'

The Reddale site is an area which has been mined in the past.

The mine company said those older, mine-affected areas will be progressively remediated over the life of the mine.

All mining and remedial works are expected to be completed within five years.

(Sourced from www.stuff.co.nz)