A mine company says there is coal under land it purchased in Nightcaps in July and it intends to extend its mine to get at it.
Australian company Bathurst Resources, which owns the Takitimu and Coaldale mines through a subsidiary, completed the $14 million move after approval from the Overseas Investment Office in July.
Spokeswoman Sam Aarons said its immediate plans were to mine the land, previously owned by a farmer, and then rehabilitate it.
''Yes, there is coal under the land. We haven't released numbers on that,'' she said.
''We have been mining on the property for some time now under an agreement with the landowner, however, it's not easy to run mining operations alongside a working property,'' she said.
The arrangement had restricted what the mine could do and imposed extra costs such as haulage of overburden, she said.
It had also restricted the amount of land the farmer could use.
''We have a six year plan for Coaldale block which is a natural extension of the Takitimu mine,'' she said.
There was a landslip east of the mine in March, with no-one hurt.
- The Southland Times
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