Genesis Energy has secured coal supply from BT Mining under a two-year contract covering 240,000 tonnes from the Rotowaro mine.
The arrangement strengthens stockpiles at Huntly Power Station, which has faced pressure on fuel availability.
Huntly Power Station usually burns 300,000–500,000 tonnes of coal each year. When water shortages or gas issues occur, the total can climb to one million tonnes. The new deal means much of this demand will be met within New Zealand rather than through imports from Indonesia.
The Rotowaro mine produces low-ash, low-sulphur coal similar to the fuel historically used at Huntly. The Rankine units were designed to run on coal with those attributes, allowing the local supply to fit seamlessly into operations.
Genesis Energy chief operating officer Tracey Hickman said: “This agreement secures a reliable local source of coal for Huntly Power Station, reducing our reliance on overseas shipments and protecting against global supply chain disruptions. It’s about keeping the lights on during periods when renewable generation is low.”
BT Mining chief executive Richard Tacon said the deal “represents a boost for the local economy and shows the important role BT Mining can play in both maintaining energy security and supporting New Zealand’s commitment to transition to a lower-emission future where possible.”
Resources Minister Shane Jones described the move as pragmatic given tightening gas supply. “Over the past decade, Genesis Energy has used between 230,000 and 1,200,000 tonnes of coal per year to generate electricity when we need it most,” he said. He added that coal mining “supports skilled, well-paying local jobs and injects economic activity into local communities.”