Solid Energy is to close its smallest coal mine, in Reefton on the West Coast, with the loss of 16 jobs.
The company says the Terrace underground mine has been struggling for some time to remain viable in the face of rising production costs.
The mine was given a reprieve a year ago, but Solid Energy says it is no longer sustainable in the current market.
The company says it hopes most of the employees can be relocated to its Spring Creek mine near Greymouth.
