Solid Energy and the Australian-headquartered Downer EDI formed a five year joint venture for running its Stockton Mine in Buller, replacing all existing small agreements with small contractors. The deal, signed by Solid Energy Chief Executive Don Elder and Downer EDI Mining Chief Executive David Overall, will officially take effect on October 3. It will enable Solid Energy to develop mines and keep these running till 2028.

Barry Bragg, the Chief Operating Officer of Solid Energy said that the firm also plans to increase investment in heavy mining equipment, such as excavators and bulldozers. The company will invest $75 million in the coming times, in line with its plans to invest $200 million in mine business.

Stockton is a leading coal produces in the countries like Japan, India and South Africa. Expressing happiness over becoming part of the alliance, Mr. Overall said: "Solid Energy is a new client for us, and New Zealand is a new market for our mining business."

Meanwhile, the state-owned miner and the Engineering, Printers and Manufacturing Union are said to have reached an agreement to start the stalled negotiations.