Spring Creek, which produced 89,000t of coal in the December 2011 quarter, up 19% year-on-year, was now 100% owned by Solid Energy after shipping and marketing group Cargill exited its joint venture partnership with Spring Creek Mining, Solid Energy chief operating officer Barry Bragg said.

Cargill entered the joint partnership with Solid Energy in March 2007 with a 47% stake in the mine and supported a development program that provided four years of production.

Bragg said: “Spring Creek was Cargill’s first investment in physical coal mining and we have always appreciated that and taken it as a mark of confidence that they decided to investigate this side of the business with Solid Energy.

“In terms of coal, Cargill is a trader, shipper and marketer, so at the end of the day we understand that physical mining is not really part of their business and that they have now decided to exit this end of it.”