State-owned coal miner Solid Energy has today issued force majeure notices to its international customers after it received a similar notice yesterday from Lyttelton Port of Christchurch.Both organisations are saying the moves are precautionary after the
State-owned coal miner Solid Energy has today issued force majeure notices to its international customers after it received a similar notice yesterday from Lyttelton Port of Christchurch.
Both organisations are saying the moves are precautionary after the magnitude 7.1 earthquake struck Canterbury on Saturday.
Force majeure clauses in contracts excuse a party from liability if an unforseen event prevents it from performing its obligations under the contract. They can be used when natural disasters occur.
Solid Energy says that based on current information the impact of the earthquake on its business will be minimal. Solid Energy is a state-owned enterprise which operates as a commercial company. It has mines near Greymouth, Westport and Reefton on the West Coast of the South Island. Its coal is railed to Christchurch for export from Lyttelton.
Solid Energy's exports in the year to June 30 were down at 1.4 million tonnes from 1.6 million tonnes in the previous year.
"Thanks to the efforts of KiwiRail and Lyttelton Port of Christchurch most coal trains are running from the West Coast to the port and an export coal shipment was loaded for Pike River earlier this week," Solid Energy said today.
"A further coal shipment is scheduled to be loaded this weekend subject to some repairs being completed at the port in the next two days."
Lyttelton Port has sustained $50m worth of damage, port company's chief executive Peter Davie said today.
The port is continuing to operate.
