Solid Energy Reorganisation About Survival

"Solid Energy's announced reorganisation today will put the company on a more stable financial footing and help secure the
future of the more than 400 positions remaining in the company", SOE Minister Tony Ryall, said today.

"The very difficult decisions taken by the Solid Energy, including making 120 positions redundant, are all about the survival
of the company", Mr Ryall said.

"Solid Energy regrets losing around 120 experienced and skilled staff and is committed to assisting them to find alternative
employment.

"WINZ will also be working alongside Solid Energy to provide ongoing help to people whose positions will be made
redundant.

"The company has been significantly affected by the down turn in world coal prices and sharp falls in offshore demand.

"Responses similar to those being made by Solid Energy have been made by coal producers all over the world.

"The effect on the company of declining world coal markets has been exacerbated by the financial problems caused by the
company's much publicised foreign exchange losses.

"Those losses emerged last year, and since that time both the Board and Chief Executive of Solid Energy have changed.

"The Government asked the new Board to conduct a strategic review of Solid Energy and provide options for the future
direction of the company.

"The Government is yet to make decisions on a preferred option, however, reorganisation the company is an essential
component of each option being considered.

"As part of the review process the Government will also consider the future of the Greymouth Coal Limited development.

"While the Government is looking favourably at the development, any approvals can not be given until the completion of a
technical report into the venture, a satisfactory joint venture agreement is reached, and the completion of the strategic review
process.

"The Government expects these issues to be addressed over the next few weeks", Mr Ryall concluded.