Underground coal mining jobs might be there at Reefton in 2011 in place of a small number of the ones lost at the Pike River Coal mine.

Crusader Coal, a small private company, has agreed conditionally to purchase Solid Energy's Terrace mine. The owners of Crusader are underground coal mining professionals having mining experience in New Zealand and Australia.

Solid Energy had placed Terrace into care and maintenance in the month of June last year since the production expenses had rendered its mining uneconomic.

Major of its 16 permanent and 2 fixed-term contract staff got shifted to the company's Spring Creek operation close to Greymouth.

The two companies revealed that the ultimate sale was dependent upon getting approvals for transferring mining licences, permits and resource consents. A settlement was anticipated in the coming few months.

According to the coal director of Crusador, Bernie Lambley, he and his fellow directors were highly enthusiastic about the prospect of reopening Terrace.

He said that they will be declaring the conditional sale now since some talks had taken place locally regarding the chance of Terrace getting reopened.